Debt Avalanche Calculator
The avalanche method pays off your highest interest rate first — the mathematically cheapest way to clear debt. List your debts, set a monthly budget, and see how much interest you save and when you'll be debt-free.
| # | Debt | APR | Paid off by |
|---|
Estimates are for illustration and education only — not financial advice. Assumes fixed rates, on-time payments and no new borrowing. Minimum-payment rules and fees vary by lender.
Why the avalanche is cheapest
The debt avalanche is about math. You pay the minimum on every debt, then throw every spare dollar at the one with the highest interest rate — regardless of its balance. High-rate debt is the most expensive to carry, so killing it first stops the most interest from ever accruing. It's the provably cheapest order to pay off debt.
Avalanche vs snowball
The avalanche targets the highest rate first; the snowball targets the smallest balance first for quicker emotional wins. Avalanche almost always costs less interest and can be faster, but if a big high-rate balance means you won't see a debt disappear for a while, the snowball's momentum may suit you better. Compare both with your own numbers.
The roll-over is the engine
The power comes from never reducing your total monthly payment. Each time a debt is cleared, its payment doesn't return to your budget — it piles onto the next-highest-rate debt. That growing "avalanche" is why the final debts fall so much faster than they would under minimum payments alone.
After the last payment
Once you're debt-free, keep making that same monthly payment — to yourself. Point it at our compound interest calculator and the money that once serviced interest starts compounding in your favour instead.
How the avalanche is built
Every month you pay the minimum on all debts and pour every spare dollar onto the highest-rate debt. Because high-rate debt is the most expensive to carry, killing it first stops the most interest from ever accruing.
Avalanche vs snowball at a glance
Same debts, same budget — two orders. The avalanche optimises for cost; the snowball optimises for motivation. Pick the one you can stick with to the end.
| Debt Avalanche | Debt Snowball | |
|---|---|---|
| Pays off first | Highest APR | Smallest balance |
| Optimises for | Least interest | Motivation & wins |
| Total interest | Lowest possible | Slightly higher |
| Best for | Cost-minded planners | Staying the course |
The avalanche is mathematically the cheapest order, but only if you keep going. If a large high-rate balance means no quick win for a while, the snowball may keep you more motivated — compare both with your own debts.