Free Debt Avalanche Calculator

Calculate how fast you can pay off debts using the avalanche method -- targeting the highest interest rate first.

USD
%
USD

Months to Pay Off

56 months

Total Interest Paid$14,800
Total Amount Paid$44,800

Months to Pay Off vs Total Monthly Payment

Debt Avalanche Method

The avalanche method pays off debts from highest interest rate to lowest, regardless of balance size.

How It Works

1. Make minimum payments on all debts 2. Put all extra money toward the highest-rate debt 3. When that is paid off, roll the payment to the next highest rate 4. Repeat until debt-free

Why Avalanche Wins Mathematically

This method minimizes total interest paid. The formula uses the standard amortization equation solved for number of payments:

n = -ln(1 - B*r/P) / ln(1+r)

Example Calculation

$30,000 total debt at 18% average rate, paying $800/month.

  1. 01Monthly rate = 18% / 12 = 1.5%
  2. 02Months = -ln(1 - $30,000 x 0.015 / $800) / ln(1.015)
  3. 03Months = -ln(0.4375) / ln(1.015) = 55.5 months (round to 56)
  4. 04Total paid = $800 x 56 = $44,800
  5. 05Total interest = $44,800 - $30,000 = $14,800

Frequently Asked Questions

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