Debt Avalanche Planner

Minimize total interest by paying off your highest-rate debts first. The avalanche method is the mathematically optimal way to eliminate debt. Enter your debts below to see your plan.

What Is the Debt Avalanche Method?

The debt avalanche method prioritizes paying off debts with the highest interest rates first, regardless of balance size. You make minimum payments on all debts except the one with the highest APR, which gets all your extra money. When that debt is eliminated, you move to the next highest rate. This approach minimizes the total interest you pay over time, making it the most cost-efficient way to eliminate debt.

When Is the Avalanche Method Best?

The avalanche method works best when you have debts with significantly different interest rates, when your highest-rate debt doesn’t have the largest balance, when you’re motivated by saving money rather than quick wins, and when you have the discipline to stick with the plan even when progress on the first debt feels slow.

Frequently Asked Questions

How much more does the avalanche save compared to snowball?

It depends on your specific debts. The bigger the spread between your highest and lowest interest rates, the more the avalanche saves. Use the comparison in the calculator above to see your exact savings.

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