Debt Avalanche Calculator
Rank multiple debts by interest rate and estimate total interest saved by paying off the highest-rate debt first with any spare repayment budget.
Your results
Direct the extra amount to the higher-rate debt while paying at least the minimum on the other, then repeat once it's cleared.
Calculation breakdown
- Priority order
- highest interest rate debt first
- Annual interest
- balance × rate
- Months to clear
- balance ÷ extra monthly amount
Worked example
With an $8,000 card at 19.99% and a $15,000 loan at 8.5%, avalanche directs a spare $300 a month to the card first since its rate is higher, clearing it in around 27 months before attacking the loan.
Assumptions
- Ignores minimum repayments still due on the non-priority debt.
- Assumes the extra amount stays constant each month.
- A simplified two-debt comparison; more debts can be modelled by repeating the highest-rate logic.
How this calculator works
The debt avalanche method directs any spare repayment budget to the debt with the highest interest rate first, while paying minimums on the rest. This calculator compares two debts side by side and shows which order saves more interest over time, based on the rates and minimums you enter.
Frequently asked questions
How is debt avalanche different from debt snowball?
Avalanche targets the highest interest rate first to minimise total interest paid, while snowball targets the smallest balance first for quicker psychological wins. Avalanche usually saves more money.
Do I need to close the other debt while paying the priority one?
No, you keep paying at least the minimum on every debt; you just direct any extra funds to the highest-rate debt until it is cleared, then move to the next.
What if my debts have similar interest rates?
When rates are close, the difference between avalanche and snowball is small, so you may prefer snowball for the motivation of clearing a small balance quickly.
Results are estimates only and are not financial, tax, legal or credit advice.