Debt Avalanche Calculator
Use the debt avalanche method to pay off debts from highest to lowest interest rate. Save the most on interest.
About This Calculator
The debt avalanche method targets debts with the highest interest rates first, minimizing the total interest paid over time. It's mathematically optimal but requires discipline.
How It Works:
- List all debts from highest to lowest interest rate
- Pay minimum on all debts except the highest-rate one
- Put extra money toward the highest-rate debt
- Roll payments to the next highest-rate debt
Frequently Asked Questions
What is the debt avalanche method?
The avalanche method prioritizes paying off debts with the highest interest rates first. This mathematically minimizes total interest paid and is the fastest way to become debt-free.
How much can I save with avalanche vs snowball?
Savings depend on your specific debts. High-rate credit cards at 20%+ create significant savings when targeted first. The calculator shows the difference between both methods.