Debt Avalanche Calculator
Pay off debt faster by targeting the highest interest rates first. See total interest saved vs. minimum-only payments.
How the Debt Avalanche Method Works
The debt avalanche method is the mathematically optimal way to eliminate debt. Enter all your debts with their balances, interest rates, and minimum payments. Add an extra monthly payment amount. The calculator simulates month-by-month: all minimums are paid on every debt, and the extra payment is directed entirely to the highest-rate debt.
When the highest-rate debt reaches zero, its former payment amount is automatically added to the next highest-rate debt's payment. This "rolling" effect means your total payment toward debt stays constant, but an increasing portion eliminates principal rather than paying interest charges.
The bar chart shows each debt's payoff month, making it easy to visualize your progress over time. The "Interest Saved" figure compares your avalanche payoff against a minimum-payment-only scenario, showing how much the strategy saves compared to making only minimum payments.
For most consumer debt situations, the avalanche method saves hundreds to thousands of dollars compared to minimum payments alone. The higher your interest rates and the more extra you can contribute each month, the more dramatic the savings become.