Debt Avalanche Calculator
Pay minimums on every debt and direct extra money to the highest APR first.
Quick answer
Enter up to three balances, APRs and minimum payments plus an extra monthly amount. The avalanche method targets the highest annual percentage rate first.
Formula and calculation
The total monthly budget stays constant. After active minimums, all remaining money goes to the highest-APR debt, then moves to the next-highest rate.
Worked example
A 22% APR balance is targeted before 15% and 9% debts even when it is not the smallest balance. This usually reduces interest mathematically.
Limitations
The model assumes fixed APRs, no fees or new borrowing and consistent monthly payments. Motivation and cash-flow needs may make another strategy more sustainable.
Source and methodology
Consumer Financial Protection Bureau debt resources. The source supports the general concept; ToolGemini uses only the values you enter and the formula described above.
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Money calculator hub · All calculators · Savings goal calculator
Frequently asked questions
What is the debt avalanche method?
It pays every minimum and sends extra money to the highest-interest debt first.
How is avalanche different from snowball?
Avalanche sorts by APR; snowball sorts by balance. Avalanche usually reduces interest while snowball may create earlier wins.
What happens when one debt is paid?
Its former minimum remains inside the total payment budget and is redirected to the next target debt.