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The debt avalanche method pays the minimum on every debt, then throws all extra money at whichever debt has the highest interest rate — mathematically, this minimizes the total interest you'll pay compared to any other payoff order.
This calculator simulates the debt avalanche method across your debts and shows how long it will take and how much interest you'll pay.
How it works
Enter up to three debts (balance, rate, and minimum payment) plus any extra monthly budget. The calculator orders them by interest rate, highest first, then simulates month by month — applying minimums to everything and directing all leftover budget (including freed-up minimums from paid-off debts) to the highest-rate remaining debt.
- Enter debt 1 balance.
- Enter debt 1 annual interest rate (%).
- Enter debt 1 minimum payment.
- Enter debt 2 balance (optional).
- Enter debt 2 annual interest rate (%, optional).
- Enter debt 2 minimum payment (optional).
- Enter debt 3 balance (optional).
- Enter debt 3 annual interest rate (%, optional).
- Enter debt 3 minimum payment (optional).
- Enter extra monthly payment (optional).
- Click Calculate to see your results.
Examples
Higher-rate debt targeted first
Given a $2,000 debt at 10% and a $5,000 debt at 25%, the avalanche method pays extra toward the 25% debt first, even though it has the larger balance — minimizing total interest paid.
Who should use it
- Planning the fastest, lowest-interest way to pay off multiple credit cards or loans.
- Comparing avalanche versus snowball payoff timelines for the same set of debts.
Industry applications
- Personal finance and debt management
- Financial counseling and coaching
Advantages
- Mathematically minimizes total interest paid across all your debts.
- Directly comparable to the site's Debt Snowball Calculator to see the interest difference for your specific debts.
Limitations
- Limited to three debts at once — for more, run the largest few through the calculator or combine smaller debts into totals.
Common mistakes to avoid
- Assuming the smallest debt should always be paid off first — that's the snowball method, not the avalanche method, and it can cost more in total interest.
- Not including a debt's minimum payment accurately, which affects how quickly the simulated payoff schedule progresses.
Best practices
- Use the debt avalanche method if minimizing total interest paid is your top priority; use the debt snowball method if staying motivated by quick wins matters more to you.
Tips
- Run your debts through both this calculator and the Debt Snowball Calculator to see the exact interest savings — if the difference is small, the snowball method's motivational benefit might be worth the (small) extra cost.