Debt Avalanche Calculator
Plan your payoff with the avalanche method, which targets the highest interest rate first to save the most money. List each debt, add any extra, and see the order, time and interest.
How the debt avalanche works
- Add each debt with its balance, interest rate and minimum payment.
- Enter the extra amount you can put toward debt each month.
- See which debt to attack first, the months to debt-free and total interest.
Examples
High-rate card versus a small cheap balance
Card A 5,000 at 24% min 100, Card B 1,000 at 8% min 50, extra 200
Card A (24%) is paid first, debt-free in 21 months with less interest than the snowball
Frequently asked questions
What is the debt avalanche method?
You pay minimums on every debt and send all extra money to the debt with the highest interest rate. When it clears, its payment rolls into the next highest rate. This minimizes the total interest you pay.
How is the avalanche different from the snowball?
The avalanche attacks the highest interest rate first, which saves the most money. The snowball attacks the smallest balance first for quick wins and motivation. They only differ when your biggest rate is not your smallest balance.
How much can the avalanche save?
It depends on the spread of rates and balances. The wider the gap between your highest and lowest rates, the more the avalanche saves versus the snowball, often hundreds of dollars or more in interest.
What if my minimum payments do not cover the interest?
If the minimums are smaller than the monthly interest, a balance can grow instead of shrinking and never pays off. The calculator flags this so you know to raise payments or lower the rate first.
Are the results financial advice?
No. These figures are estimates based on the balances, rates and payments you enter. Confirm exact terms with your lenders, and watch for fees or rate changes that can affect the plan.
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