Debt Avalanche Calculator
See how fast you can be debt-free with the avalanche method: pay the highest APR first to minimize the interest you pay, then roll that payment into the next-highest rate. Free and accurate.
Calculator by Toolsloft ↗- Months to debt-free
- 28
- Total interest
- $1,865.31
- Total paid
- $10,865.31
This calculator applies the avalanche method across several debts at once, directing every spare dollar to the highest-APR balance to minimize total interest. Use it to build a payoff plan when you carry multiple cards or loans and want the cheapest route to debt-free.
How this is calculated
Each month it adds interest at APR divided by 12 to every debt, pays each minimum, then sends the remaining pooled payment to the debt with the highest APR first, rolling freed-up payments forward until all balances reach zero.
How to use
- Enter the balance, APR, and minimum payment for each of your debts.
- Enter the extra amount you can put toward debt each month.
- Read the months to debt-free, total interest, and total paid.
Examples
- Three debts + $200 extra:
28 months to debt-free - Highest rate first:
22% APR debt cleared before 15% APR
FAQ
- How does the debt avalanche method work?
- You pay the minimum on every debt, then throw all your extra money at the debt with the highest APR. When it is paid off, you roll its payment into the next-highest rate, which minimizes the total interest you pay.
- Is the avalanche better than the snowball method?
- Mathematically, yes. Paying the highest interest rate first (the avalanche) always pays the least total interest. The snowball method clears the smallest balances first for motivation, but usually costs more overall.
- What if my payments are too low?
- If your minimum payments plus extra do not cover the monthly interest, the debts never clear. The calculator will tell you the total payment is too low.