Debt

Debt Avalanche Calculator

Pay off debts highest interest rate first to save the most money with the debt avalanche method.

Calculator

$
%
$
$

Months to payoff

9

Total interest

$116.11

Total paid

$2,116.11

Projection

What is debt avalanche?

The debt avalanche method pays off debts from highest interest rate to lowest. It minimizes total interest paid, making it the mathematically optimal strategy.

Example

With a 22% APR card, a 15% personal loan, and a 4% car loan, you pay extra on the 22% card first, then the 15% loan, then the car.

Money-saving tips

  • Sort debts by interest rate, highest first.
  • This saves the most money but can take longer to see the first debt eliminated.
  • Stick with it — discipline pays off here.

Common mistakes

  • Losing motivation before the first debt is gone.

Financial definitions

Avalanche method
Paying debts highest interest rate first to minimize total interest.

Frequently asked questions

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