List all debts sorted by interest rate (highest first)
Pay minimum payments on all debts
Put all extra money toward the highest interest debt
When paid off, roll that payment to the next highest rate
Avalanche (This Calculator)
Targets highest interest rate first. Saves the most money on interest over time.
Snowball Method
Targets smallest balance first. Provides quick wins for motivation.
By targeting high-interest debt first, you reduce the amount of interest accruing each month.
Higher Rate Paid First = Less Total Interest
The debt avalanche is a debt repayment strategy that prioritizes paying off debts with the highest interest rates first, regardless of balance size.
This method is mathematically optimal for minimizing total interest paid over the life of your debts, potentially saving you hundreds or thousands of dollars.
The avalanche method is ideal when:
- You have debts with significantly different interest rates
- Saving money is your top priority
- You're disciplined and don't need quick wins for motivation
- You have high-interest credit card debt
Debt avalanche calculations are estimates and may vary based on interest rate changes, missed payments, or additional charges. This calculator assumes fixed interest rates and consistent payments. Consult a financial advisor for personalized debt management advice tailored to your situation.