Debt avalanche calculator

Pay off your highest-interest debt first to pay the least interest overall. Add your debts to see the order they’ll be paid off, your debt-free date and what you save.

Your debts

Your plan

On top of the minimums. It goes to one debt at a time.

Avalanche: the highest rate first, which costs the least interest.

Debt-free in3 years, 1 month
Paying each month
$837.00
Until the last debt is paid
Total interest
$4,420
Interest saved
$8,471
vs. minimums only
Time saved
6 years, 11 months
vs. minimums only
  1. Rewards card1 year, 6 months
  2. Store card1 year, 7 months
  3. Personal loan1 year, 10 months
  4. Student loan3 years, 1 month

The snowball method would cost $644 more in interest and finish 1 month later.

Total balanceYour planMinimums only
Your plan, year by year
YearPaidPrincipalInterestBalance left
1$10,044.00$7,146.66$2,897.34$19,153.34
2$10,044.00$8,848.05$1,195.95$10,305.29
3$10,044.00$9,719.80$324.20$585.49
4$588.17$585.49$2.68$0.00

How the debt avalanche works

List your debts from the highest interest rate to the lowest. Pay the minimum on every one, and put every extra dollar toward the highest rate. When it’s paid off, add its minimum to the extra and send all of it to the next highest rate, until the last debt is gone. The total you pay each month stays the same the whole way.

  1. Enter each debt’s balance, interest rate and minimum payment.
  2. Enter how much extra you can pay each month on top of the minimums.
  3. See the order your debts get paid off, the date you’re debt-free and the interest it costs.

Why the highest rate first?

Every month, each debt adds interest at its own rate. Paying down the most expensive debt first cuts the interest you’re charged the fastest, so for the same monthly payment the avalanche always costs the same or less than any other order, and it often finishes a month or two sooner. Under the results, the calculator shows what the snowball method would cost with your debts.

The catch

If your highest-rate debt is also a large balance, the first payoff can take a year or more, and some people lose steam before then. If the savings turn out small for your debts, the debt snowball calculator shows the plan that clears whole debts sooner. The snowball vs. avalanche guide compares both with the same debts.

Making room for the extra payment

The extra amount matters more than the method: each extra dollar a month shortens the plan more than switching orders does. A budget is where that money comes from. With an envelope budget, the extra payment gets its own envelope, filled each payday before the money can go anywhere else.

Questions

Is the avalanche method always cheaper?

For the same monthly payment, yes: it costs the same or less in interest than any other order. How much it saves depends on how far apart your rates are.

Which rate should I enter for a credit card?

The purchase APR on your statement. If part of the balance is on a promotional rate, enter it as a separate debt with its own rate.

What about a 0% promotion that ends soon?

The calculator treats 0% as 0% for the whole plan. If the rate jumps when the promotion ends, plan to pay that balance before then, or enter the rate it will become.

What happens to the minimum of a paid-off debt?

It joins your extra payment and goes to the debt with the next highest rate, so you keep paying the same total each month until you’re debt-free.

Estimates only, using monthly compounding at your APR divided by 12. Your lender’s numbers may differ with daily interest, fees or rate changes. This calculator isn’t financial advice.