Debt Avalanche Calculator
Quick answer
Sort by APR descending; pay minimums on all; apply all extra to top APR until paid, then roll to next.
For a related estimate, see Apr Calculator.
Explore further: Auto Loan Calculator · Car Loan Calculator
Why avalanche saves interest
Highest APR accrues the most finance charge per dollar of balance—paying it first removes the most expensive debt fastest.
Explore further: Credit Card Calculator · Credit Card Interest Calculator
Avalanche routes extra payments to the highest APR debt, minimizing interest paid. This intent is for users who want the lowest cost and can stay disciplined without small-balance wins.
How to use this calculator
- Promo rates: Reorder when teaser APR ends—recalculate monthly.
- Mixed debt types: Compare after-tax cost if student loans have deductible interest (rules vary).
- Liquidity: Don’t zero cash reserves just to shave interest—keep an emergency buffer.
Real-world examples
- Example: $12k @ 24% before $8k @ 12%—extra dollars to the 24% line save more per month (illustrative).
- Sensitivity check: Nudge the rate by about +0.5% and the principal by about −5%. If the payment, break-even, or target amount moves enough to change your decision, you are still on a steep part of the curve where small inputs matter.
Explore further: Credit Card Payoff Calculator
What this means
Avalanche minimizes interest if extra dollars stay allocated to highest APR until zero.
FAQ
Is this a loan commitment?
No. Outputs are educational estimates. Final payments, APR, and fees come from your lender’s disclosures.
How accurate is this calculator?
It applies standard math to the inputs you enter. Real lenders, payroll rules, and rounding can differ—use results for planning and comparison, not as binding quotes.
Why might my result differ from another website?
Different assumptions (APR vs note rate, day-count, tax year, rounding mode, or unit definitions) shift outputs slightly. Align inputs with the same definitions when you compare.