DEBT · ON YOUR DEVICE
Debt avalanche calculator
List up to four debts and an extra monthly amount. The avalanche method usually costs the least interest.
EXAMPLE ESTIMATE
Your estimate
Enter your values and select Calculate.
Estimates use your assumptions. Calculations use unrounded values; displayed figures are rounded.
HOW IT WORKS
A useful estimate starts with clear inputs.
- Step 1
Enter up to four debts with balance, annual interest rate and minimum monthly payment. Leave unused debts at 0.
- Step 2
Add the extra amount you can pay each month on top of the minimums.
- Step 3
Calculate to see the payoff order, debt-free date and interest saved, and compare with the snowball method.
If a 2,000 card charges 24% and a 2,000 loan charges 6%, the avalanche method puts the extra on the card first because it costs the most.
Calculation assumptions and limits
Each month interest is added at the annual rate divided by 12, minimums are paid on every debt, then everything left over goes to the debt with the highest rate. When a debt is cleared its payment rolls into the next one. No new borrowing, fees, promotional rates or changing minimums are modelled, and the snowball comparison uses the same total monthly budget.
Can I use this with my local currency?
Yes. All inputs in one calculation must use the same currency. The currency selector changes number formatting and labels; it does not look up exchange rates or convert your amounts. Local loan rules and products may calculate costs differently.
Are my numbers saved?
No. Your inputs and results stay in this page’s memory. Reloading or leaving clears them. Download the CSV or print the result if you want a copy.
Learn more: FTC: coping with debt. WORDMIO calculates locally using the assumptions above.
Save the most interest by attacking the highest rate
The debt avalanche method pays the minimum on every debt and sends all spare money to the debt with the highest interest rate. Each month that debt costs you the most, so clearing it first normally reduces the total interest you pay.
Enter up to four debts with balance, rate and minimum payment, plus an extra monthly amount. The calculator shows the payoff order, your debt-free date, total interest and how much you save compared with paying only the minimums. It also shows what the snowball method would do with the same budget.
Free to use. No sign-up required.
How to use this tool
- Enter each debt’s balance, annual rate and minimum payment. Leave unused debts at 0.
- Add the extra amount you can pay each month.
- Calculate to see the payoff order, interest saved and the comparison with snowball.
A practical example
If a 2,000 card charges 24% and a 2,000 loan charges 6%, the extra payment goes to the card first.
Before you finish
Rates and minimums are assumed to stay the same. If a promotional rate ends, enter the new rate and run it again.
The idea behind the avalanche method
Every month, each debt adds interest to what you owe. The debt with the highest rate adds the most per dollar of balance. By sending your extra payments there first, you remove the most expensive interest soonest. Minimums keep the other debts in good standing. When the first debt is cleared, its payment moves to the next highest rate.
When avalanche saves the most
The gap between avalanche and snowball is largest when you have a big difference in rates, for example a high-rate card next to a low-rate loan, and when the high-rate debt is also large. If all rates are similar, the two methods are almost the same, and you can choose by preference.
Reading your results
The table shows the order in which debts are cleared and the month of each payoff. The chart shows total debt falling over time. Interest saved is measured against paying only the minimum payments, which is often much slower. If the minimum payments alone would never clear a debt, the calculator says so.
Lowering the rate itself
Besides choosing an order, you can lower costs by asking a lender for a lower rate or moving a card balance to a cheaper product. Compare any offer with the loan offer comparison, including fees, before you switch.
Frequently asked questions
How does the avalanche method work?
You pay all minimums, then put every extra payment on the debt with the highest interest rate. When it is cleared, its payment moves to the next highest rate.
Is avalanche always the cheapest method?
With a fixed monthly budget it normally costs the least interest, because the most expensive debt is removed first. The calculator compares it with snowball so you can see the real gap for your debts.
What if two debts have the same rate?
The calculator clears the smaller balance first, which also frees a minimum payment sooner.
Should I include a 0% promotional balance?
You can enter it with a 0% rate. Remember that the promotional rate may end, and change the rate if it does.
Does the extra payment change over time?
No. Your total monthly payment stays the same. When a debt is cleared, its minimum payment joins the extra amount automatically.
Does the order change if a rate changes?
It can. If a promotional rate ends, enter the new rate and calculate again to see the updated order.