Debt Avalanche Calculator
List your debts from highest interest rate to lowest, add an extra monthly payment, and see the fastest, lowest-cost path to debt-free.
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How the debt avalanche method works
The debt avalanche method is the mathematically optimal way to pay off multiple debts. Instead of ranking your balances by size, you rank them by annual percentage rate (APR) — highest to lowest. You keep making minimum payments on everything, but every extra dollar goes toward the single debt charging you the most interest. Once it's gone, that payment rolls into the debt with the next-highest rate, and so on, until every balance is at zero.
Step by step
- List every debt you owe, ordered from highest interest rate to lowest — ignore balance size entirely.
- Pay the minimum required payment on every debt except the highest-rate one.
- Direct every spare dollar at that highest-rate balance until it's paid in full.
- Roll the freed-up payment into the debt with the next-highest rate, and repeat.
Worked example
Say you owe $3,000 at 24% APR and $6,000 at 9% APR, and can pay $300 extra per month. The avalanche method puts every extra dollar toward the 24% card first — even though it has the smaller balance, it's also the more expensive one. Because interest compounds on the remaining balance every month, clearing the 24% debt first stops the fastest-growing part of your debt from compounding, which lowers your total interest paid compared to attacking the $6,000 balance first.
Extra payment → highest APR balance
When a debt reaches $0, its minimum payment is added to next month's extra payment
Avalanche vs. snowball
The debt snowball method instead targets your smallest balance first, regardless of rate, to build quick psychological wins. It typically costs a bit more in total interest but can be easier to stay motivated with. If you want to compare the exact dollar difference for your own debts, use the full Debt Payoff Calculator, which lets you switch between both strategies instantly.
Tips to maximize your avalanche plan
- Double-check your APRs — promotional rates, penalty APRs, and variable rates can all change your priority order.
- Automate minimum payments on every account so nothing is ever missed.
- Apply windfalls immediately to your current highest-rate target debt.
- Reassess if rates change — a variable-rate card that jumps past another debt should move to the top of your list.
Frequently Asked Questions
You list your debts from highest interest rate to lowest, regardless of balance size. You pay the minimum on every debt except the one with the highest APR, which gets every extra dollar you can spare. Once it's paid off, that payment rolls into the debt with the next-highest rate.
Interest is calculated on your remaining balance every month, so the debt with the highest APR is generating the most interest charges relative to its size. Eliminating it first stops the most expensive compounding sooner, which mathematically minimizes the total interest paid across your entire debt payoff plan.
It depends on how spread out your interest rates are. If your highest and lowest rates are similar, the difference is usually small. If you have a mix of high-rate credit cards and a low-rate personal loan, the avalanche method can save hundreds or even thousands of dollars in interest.
Some people find it harder because your first target debt may have a large balance, delaying that first payoff milestone. Others prefer knowing they're minimizing cost. Both methods work as long as you stay consistent — try both in our calculators and pick the one you're most likely to follow through on.