Debt Avalanche Calculator

The debt avalanche pays minimums on all accounts, then directs every extra dollar to the highest APR balance. When that debt is eliminated, the freed minimum plus extra flows to the next-highest rate — mathematically efficient for cutting total interest when you maintain the same total monthly outlay as snowball.

Same default debts as snowball: Card A $800 @ 12%, Card B $2,500 @ 18%, Loan $6,000 @ 9%, $200 extra/month. Avalanche targets Card B first because 18% costs more per dollar of balance than 12% or 9%. The $800 card waits — harder emotionally, often cheaper overall.

First payoff may take longer if the highest-rate debt is also the largest balance — patience matters. Run the snowball calculator with identical numbers to compare total interest and debt-free month; the gap is the price of motivation versus optimization.

Promotional 0% APR cards complicate strategy: sometimes paying them last while promo runs is rational, but missing the promo end date is expensive — this tool uses the APR you enter today, not future step-ups.

Common mistakes include switching methods every month (losing focus), underestimating minimums on store cards with deferred interest, and assuming avalanche is always best when behavioral dropout would stall all progress.

Up to three debts fit the form. Fees, variable rates, and new purchases are excluded. Order output shows payoff sequence for transparency.

Hybrid strategies that pay toxic payday loans first regardless of size are rational but not this pure avalanche form — reorder manually if a small ultra-high APR loan should jump the queue.

Tax deductibility of mortgage or student loan interest does not change avalanche order here; after-tax APR adjustments are not applied.

If two debts share the same APR, avalanche ties — payoff order among equals may follow balance size; check the order output for your inputs.

Personal loans at fixed APR often beat revolving cards in avalanche priority — enter the personal loan APR accurately even if the minimum is higher.

Military SCRA rate caps may reduce APR on old credit cards — update APR fields if you qualify before comparing avalanche order.

Windfall lump sums can be modeled by temporarily adding to extra payment for one month — this steady extra field assumes the same boost every month.

Medical debt at 0% promo may still belong in avalanche if promo expires — enter future APR when comparing to credit cards today.

Balance transfer to 0% card is a form of avalanche if you pay aggressively before revert — not modeled as transfer fee here.

Same extra payment in avalanche versus snowball often differs by only a few months but hundreds in interest — compare totals, not feelings alone.

When highest APR debt is also the largest balance, avalanche patience pays — track interest saved versus snowball as motivation.

Tax refund applied as one-time extra is not in the monthly extra field — temporarily add to payment mentally for that month only.

Avalanche shines with wide APR spreads — if all debts are within one point, snowball and avalanche timelines converge.

Print interest total from avalanche and snowball side by side — the dollar gap is the cost of choosing motivation over math.

Refinancing highest APR debt to a personal loan can simplify avalanche to one balance — rerun single debt payoff after refinance closes.

Store card deferred interest traps accrue retroactive interest — prioritize those before generic avalanche order if promo expiry is near.

Avalanche extra should hit the highest APR even when that creditor sends the lowest minimum — discipline beats convenience.

Track saved interest in a spreadsheet column when comparing to snowball — seeing dollars helps sustain avalanche when first wins feel slow.

When APRs tie, avalanche may follow balance size — confirm order in the summary output for your specific debt list.

Credit counseling may negotiate concessions — enter post-agreement APR and payment if you enroll in a managed plan.

Limits: planning model only — not financial or tax advice. Consistency beats perfect strategy on paper if you cannot follow the plan.