Debt Avalanche Calculator

Frequently Asked Questions

What is the debt avalanche method?

The debt avalanche targets your highest-interest-rate debt first while paying minimums on everything else. Once the highest-rate debt is paid off, you apply that payment to the next highest rate. It is the mathematically optimal strategy for minimizing total interest paid.

How much more does the avalanche save vs the snowball?

The savings depend on the interest rate spread across your debts. If you have a 25% APR credit card alongside a 6% car loan, targeting the credit card first saves substantially more. The gap is largest when high-rate balances are large.

Why do people choose the snowball if the avalanche saves more?

Behavior matters as much as math. The snowball provides early wins — fully paid-off accounts — that reinforce the habit of debt payoff. The avalanche can feel slow if your highest-rate debt also has a large balance. Choose the method you will actually stick with.

Can I combine both methods?

Yes. A common hybrid is to pay off one or two small balances first for motivation (snowball), then switch to the avalanche method for remaining debts. Some financial coaches call this "quick wins plus math."

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