Debt Avalanche Calculator

How the debt avalanche method works

You pay every minimum and send all extra money to the highest interest rate. When that debt is paid off, its minimum joins the extra and moves to the next-highest rate.

Each extra dollar goes where it stops the most interest. The downside is patience: if your highest-rate debt is also your largest, the first payoff can take a while.

How to use this calculator

1. Enter each debt: name, current balance, APR and minimum payment.
2. Open the advanced options if needed. Enter a promo APR and the promo months left for a card on an intro offer, or set a minimum payment rule based on a percent of the balance, with a floor.
3. Add your extra monthly payment and any one-time lump sums, with the month each arrives.
4. Leave the strategy on avalanche, or switch to snowball, custom order or minimums only.
5. Use the goal seek to pick a debt-free month and year and see the extra you would need each month.

What the results mean

The debt-free date is the month of your last payment. Total interest and total paid cover the whole plan, and interest saved compares it with minimums only. The four-strategy table puts the avalanche next to the other three. Below are the payoff order with each debt’s payoff month, a balance chart and the month-by-month schedule, which you can export as CSV, print, or share with debt names hidden.

Worked example

Take three debts and add $250 a month, for a monthly budget of $655.00.

The avalanche goes Visa, store card, personal loan. The snowball would start with the store card, the smallest balance. The interest gap between the two plans is $167.22. Run the same debts on the debt snowball calculator, and read debt snowball vs avalanche for the full trade-off.

Promo rates and the avalanche

A card at 0% for 12 months looks like your cheapest debt, but the calculator ranks it by the regular APR it moves to when the promo ends, because that is the rate the balance carries once the promo is over. Interest is still charged at the promo rate until the promo ends.

How we calculate this

Each month interest is added at the APR divided by 12 and rounded to the cent, then every minimum is paid, then the rest of the budget goes to the debt with the highest regular APR (ties go to the smaller balance). The budget stays fixed, so freed minimums roll over, and money left in a payoff month moves to the next debt that month. See the methodology page for every rule.

Related

• Debt avalanche method: how the method works, step by step.
• Debt payoff calculator: the same planner with all four strategies.

FAQ

How does the debt avalanche method work?

You list debts from the highest interest rate to the lowest and pay the minimum on each. All extra money goes to the highest rate. When that debt is paid off, its minimum is added to the extra and goes to the next-highest rate. You repeat this until every balance is zero.

Is the avalanche always cheaper than the snowball?

It usually costs less interest. When your smallest debt also has your highest rate, both methods pick the same order and cost the same. How much you save depends on the spread between your rates and balances. The comparison table above shows the exact dollar difference for the debts you entered.

How does the calculator rank a 0% promo card?

By its regular APR, the rate that applies after the promo ends. The promo rate is still used for interest during the promo months. Ranking by the promo rate would put that card last and leave it growing at the full rate later, which is the opposite of what the avalanche is meant to do.

What if two debts have the same APR?

The smaller balance goes first. That gives you the earlier payoff without costing any interest, since both debts charge the same rate. If you want a different order for any reason, switch the strategy to custom and the calculator will pay your debts in the order you list them.

Is the avalanche worth it if the savings are small?

That depends on you. Some people need an early payoff to keep going, and a plan you quit costs more than any strategy. If the table shows a small gap between avalanche and snowball, either one works. If the gap is large, the avalanche keeps that money in your pocket.