Debt Avalanche Calculator
List your debts, add what extra you can — see the debt-free date, highest rate first.
How the avalanche works
Every debt gets its minimum each month. All spare budget — your extra plus the minimums of any debt already cleared — piles onto the highest interest rate until it’s gone, then rolls to the next-most-expensive. The tool simulates it month by month at each debt’s rate.
Worked example: debts at 22%, 14% and 7% with $300 extra → the 22% debt is attacked first because every dollar sitting there costs the most. Clearing the priciest rate first is what makes this the least-interest route.
Why it wins on the maths
Interest is the enemy, and the highest rate compounds fastest — so removing it first starves the debt of its most expensive growth. If you’d rather feel quick wins from small balances, the snowball method trades a little interest for momentum. Pick the one you’ll finish.
Frequently asked questions
What is the debt avalanche method?
You pay the minimum on every debt, then throw every spare dollar at the debt with the highest interest rate — regardless of balance. When it clears, its payment rolls onto the next-highest rate. Because interest is what makes debt expensive, killing the priciest rate first is mathematically the cheapest, fastest route to debt-free.
Avalanche or snowball — which should I use?
Avalanche (highest rate first) always pays the least interest and clears at least as fast. Snowball (smallest balance first) can feel more motivating thanks to quick early wins. If you’re disciplined, avalanche wins on the maths; if you need momentum, the snowball calculator is one click away — the best plan is the one you finish.
What does the extra payment do?
It’s the amount above all your minimums you can put toward debt each month. Directed at the highest-rate debt, even a modest extra slashes both the timeline and the interest, because it removes the most expensive balance first. Move the slider to watch both numbers fall.