Debt Avalanche Calculator
Plan your debt payoff strategy using the avalanche method — highest interest first. Enter values for instant results with step-by-step formulas.
Formula
Avalanche Method: Pay minimums on all debts, apply extra payment to highest interest rate first
The debt avalanche orders debts from highest to lowest interest rate. Extra payments go to the most expensive debt first, minimizing total interest paid over the life of all debts.
Worked Examples
Example 1: Avalanche vs Snowball Comparison
Problem: Credit card ($5,000, 22%, $100 min), car loan ($12,000, 6%, $350 min), student loan ($25,000, 5.5%, $280 min). $200/month extra.
Solution: Avalanche order: Credit card (22%) -> Car loan (6%) -> Student loan (5.5%)\nSnowball order: Credit card ($5k) -> Car loan ($12k) -> Student loan ($25k)\nIn this case, both target the credit card first (smallest AND highest rate).\nAvalanche typically saves $200-2,000+ in interest depending on balances and rates.
Result: Avalanche saves interest vs snowball while paying off same total debt
Frequently Asked Questions
What is the debt avalanche method?
The debt avalanche method pays off debts ordered by interest rate, from highest to lowest. You make minimum payments on all debts and direct extra payments to the highest-rate debt first. Once that's paid off, you move to the next highest rate. This minimizes total interest paid and is mathematically optimal — you'll pay less overall and often become debt-free sooner than the snowball method.
How does avalanche compare to snowball?
Avalanche targets the highest interest rate first, saving the most money. Snowball targets the smallest balance first, giving quicker psychological wins. In most cases, avalanche saves hundreds to thousands in interest. However, if all rates are similar, the difference is small. Studies show snowball users are more likely to stay motivated — but if you're disciplined, avalanche is the better financial choice.
When should I use avalanche over snowball?
Use avalanche when: you have debts with widely varying interest rates (e.g., 22% credit card vs 4% student loan), you're motivated by math and savings, or you have large high-rate balances. Use snowball when: you need quick wins to stay motivated, your rates are similar, or you have several small debts you can eliminate fast. Many people use a hybrid — pay off one tiny debt first for momentum, then switch to avalanche.
What is the debt snowball vs debt avalanche method?
The debt snowball method pays off debts smallest-to-largest regardless of interest rate, providing psychological wins. The debt avalanche method pays off highest-interest debts first, saving more money mathematically. Both require making minimum payments on all debts while putting extra money toward the target debt.
How does debt consolidation work mathematically?
Debt consolidation combines multiple debts into one loan, ideally at a lower interest rate. Calculate total current monthly payments and total interest paid over remaining terms. Compare to the consolidated loan's monthly payment, total interest, and any fees. Consolidation saves money only if the new rate is lower and you do not extend the term significantly.
Is my data stored or sent to a server?
No. All calculations run entirely in your browser using JavaScript. No data you enter is ever transmitted to any server or stored anywhere. Your inputs remain completely private.