Finance & Money
Debt Avalanche Calculator
Model two debts on separate monthly ledgers, retain both APRs throughout the schedule, and roll the fixed debt budget into the surviving account after the high-rate target closes. The result is an executed avalanche path, not a weighted-rate proxy.
Total starting debt-
Monthly debt budget-
First target APR-
Account-level avalanche payoff time (1,200 means not repaid within model cap)-
Account-level modeled interest-
Exact scenario comparison
Recurring extra avalanche payment scenarios
Exact scenario comparisonRecurring extra avalanche payment changes while all other entered assumptions remain constant.
| Recurring extra avalanche payment | Total starting debt | Monthly debt budget | First target APR | Account-level avalanche payoff time (1,200 means not repaid within model cap) | Account-level modeled interest |
|---|
Period-by-period detail
Monthly schedule and annual summary
How to use Debt Avalanche Calculator
- Enter each debt's balance, APR, required payment, and the recurring extra amount available to the strategy.
- Confirm the higher APR is the first target and that the combined debt budget exceeds account-level interest.
- Direct extra cash to the highest-APR debt in practice and update the calculation whenever rates, balances, or lender minimums change.
Calculator guide
Understanding Debt Avalanche Calculator
A debt avalanche must preserve each account's contractual APR and direct the monthly remainder to the highest-rate active balance after the other required payment is covered.
Calculation method
How the calculation works
Accrue interest separately, cover the non-target required payment, direct the remaining fixed debt budget to the highest-APR balance, and roll released payments into the surviving debt. Accrue interest separately, cover the non-target required payment, direct the remaining fixed debt budget to the highest-APR balance, and roll released payments into the surviving debt.
Worked situations
Practical examples
- For an $8,500 card at 24% and a $15,000 loan at 9%, pay both minimums and direct the remaining budget to the 24% card first.
- Enter the complete monthly amount available across both debts, not only the extra amount sent to the priority account.
- Run the page again after a major balance or APR change because the weighted rate will also change.
Better inputs
Useful tips
- List debts in descending APR order outside the calculator and verify promotional-rate end dates.
- Automate minimum payments on every account before directing the remaining budget to the highest APR.
- Recalculate whenever a balance transfer, variable-rate reset, fee, or new charge materially changes the plan.
Before relying on the result
Limitations and common mistakes
- The model retains two monthly ledgers, but it does not support more than two debts, daily interest, or changing issuer minimum formulas.
- Daily periodic rates, compounding conventions, fees, new borrowing, payment timing, and account-specific minimums are not modeled.
- Credit, liquidity, tax, legal, and settlement consequences require separate review.
Reference
Key terms
- Debt avalanche
- A payoff order that sends extra money to the highest APR while maintaining required payments on all other debts.
- Priority APR
- Highest APR among active debts; that account receives the monthly remainder after other required payments.
- Total monthly payment
- All required and extra cash expected to be paid across the modeled debts each month.
- Modeled interest
- Estimated cash paid above principal under the simplified combined-balance payoff.
Important note
Calculated from the entered values and stated financial terms. It is not a product quote, lending decision, tax filing, or investment recommendation.
Frequently asked questions
Which debt receives the extra payment first?
The debt with the higher APR should receive the extra amount after both required minimums are met.
Does the model keep both APRs separate?
Yes. Interest accrues on each remaining account balance at its entered APR before that month's payments are allocated.
What if the payment does not cover interest?
The balance may not amortize. Increase the payment, reduce the rate, or obtain account-specific guidance before relying on a payoff horizon.
Can the avalanche take longer to show an account closure?
Yes. It targets interest cost rather than the smallest balance, so an early psychological milestone may occur later than under a snowball.