Debt Avalanche Calculator with Payoff Order & Interest Saved
The avalanche method targets your highest interest rate first — the mathematically optimal way to become debt-free. Enter your debts and extra monthly payment to see exact payoff order, interest saved, and debt-free date.
Country
Currency
🏔️
Add Your Debts
Your Debts
Extra Monthly Payment
€
Amount above all minimum payments combined. Applied to the highest-rate debt first.
Debt-Free In
—
with avalanche method
Total Interest Paid
—
across all debts
Total Paid
—
principal + interest
Interest Saved
—
vs minimums only
Payoff Order — Highest Rate First
Monthly Payment Schedule
Month
Total Payment
Interest
Principal
Remaining Debt
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Your debt avalanche plan is ready. Ask me how it compares to the snowball method, how much you save targeting the highest rate first, or what happens if you increase your extra payment.
🏔️ Avalanche Tips
The avalanche is mathematically optimal — it always minimises total interest paid. If cost matters more than motivation, choose avalanche over snowball.
The higher the rate difference between your debts, the more the avalanche saves compared to the snowball.
When your highest-rate debt is paid off, roll its full payment into the next one — that is the avalanche accelerating.
Even a small extra monthly payment on the highest-rate debt materially reduces total interest over time.
The debt avalanche method orders your debts by interest rate — highest first. You pay the minimum on every debt each month, then put all extra money toward the debt with the highest rate. When that debt is gone, you roll its entire payment into the next highest-rate debt. This minimises the total interest you pay.
The avalanche is mathematically optimal. It is not always the fastest for early psychological wins — if your highest-rate debt also has a large balance, the first payoff can feel slow. But if minimising total cost is your goal, the avalanche delivers that result consistently.
The Method Step by Step
Step 1: List all debts from highest to lowest interest rate
Step 2: Pay minimums on every debt
Step 3: Put every extra euro toward the highest-rate debt
Step 4: When it is paid off, roll that payment into the next highest rate
Step 5: Repeat until debt-free
The avalanche saves the most when interest rates differ significantly across your debts.
Avalanche vs Snowball
The snowball targets smallest balance first for faster early wins. The avalanche targets highest rate first for lowest total cost. Both beat paying minimums only. The snowball can be better behaviourally. The avalanche is better financially. Use both calculators to see the difference for your specific debts.
Example — Avalanche vs Snowball Order
Debt
Balance
Rate
Avalanche Order
Snowball Order
Credit card A
€3,500
22%
1st
2nd
Credit card B
€800
18%
2nd
1st
Personal loan
€6,000
9%
3rd
3rd
Car loan
€12,000
5%
4th
4th
The avalanche attacks the 22% card first even though the 18% card has a smaller balance. Over a typical payoff period this saves a significant amount in interest compared to the snowball order.
Frequently Asked Questions
How much does the avalanche save vs minimums only?+
Paying any extra toward the highest-rate debt almost always saves significantly more than paying minimums only. On a typical set of consumer debts with rates between 10% and 22%, adding even €100–200 per month can save thousands in interest and cut years from the payoff timeline.
Should I choose avalanche or snowball?+
Choose avalanche if minimising total interest is your priority and you can stay motivated even without quick early wins. Choose snowball if you need to eliminate individual debts quickly to maintain momentum. Both work — the right one is the one you will follow consistently.
What if two debts have the same rate?+
When two debts have identical interest rates, target the smaller balance first. This is a hybrid approach — you maintain the interest cost efficiency of the avalanche while clearing a debt faster for a motivational benefit.
Should I include my mortgage?+
Most people exclude their mortgage from the avalanche. The method works best on consumer debts — credit cards, personal loans, car loans, and overdrafts. Mortgage overpayment involves different tax implications, prepayment penalties, and liquidity considerations and is usually planned separately.