Debt Avalanche Calculator
The avalanche method pays minimums on everything, then throws every extra dollar at the highest-APR balance first — the mathematically cheapest way out of debt. List up to 5 debts below.
Estimates only — not financial advice. This calculator gives approximate figures for planning. It is not financial, tax, or legal advice; check with a qualified professional before making decisions.
How the debt avalanche calculator works
Every month the simulation charges each debt one month of interest, pays every minimum, then sends your entire extra payment to the unpaid debt with the highest APR. When that debt clears, its minimum plus the extra rolls into the next-highest-APR debt — the “avalanche” that gives the method its name.
For comparison, the same simulation runs with no extra payment, so the “interest saved” row shows exactly what your extra dollars buy you. Because interest accrues fastest on high-APR balances, killing those first always minimizes total interest.
each month: interest accrues → minimums paid → extra → max APR balance
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Debt avalanche calculator FAQ
What is the difference between avalanche and snowball?
Avalanche attacks the highest APR first and minimizes total interest — it is mathematically optimal. Snowball attacks the smallest balance first for quick psychological wins. Both beat paying minimums only.
What if two debts have the same APR?
Then target the smaller balance first: it clears sooner and frees up its minimum payment for the next debt. The calculator breaks APR ties this way automatically.
What if I cannot cover all the minimums?
This calculator assumes every minimum is paid. If minimums exceed your budget, talk to your lenders about hardship options before the debts grow — the math here cannot fix a shortfall.
Should the extra really go to the highest APR, not the biggest balance?
Yes. A dollar of extra payment saves the most interest where the rate is highest, regardless of balance size. That is the whole logic of the avalanche.
Are balance transfers or new charges included?
No. The simulation assumes fixed APRs and no new spending. New charges or rate changes mean re-running the plan.