Debt avalanche calculator
The avalanche method attacks debts in descending APR order — mathematically the cheapest path out. See your total interest saved vs the snowball method.
Your action plan
Personalized insights based on your numbers above
A 0% balance transfer card could save thousands
With at least one debt above 18% APR, a 0% balance transfer (typically 12-21 months promo) could save $1,926+ in interest. Watch the 3-5% transfer fee and pay off before the promo ends.
4 debts? Snowball wins on momentum
With 4 debts, snowball method (smallest balance first) creates 4 quick wins to build momentum. Avalanche saves slightly more interest but has higher dropout rates. Behavior beats math.
When debt-free, redirect $200/mo to investing
The discipline that paid off $35,800 is worth more than the debt freedom itself. $200/month invested at 8% for 20 years becomes $1,098+. Turn the snowball into a wealth machine.
Why avalanche saves more interest
Interest accrues daily on every dollar of debt at each debt's APR. A $5,000 balance at 24% APR generates $1,200/year of interest. A $5,000 balance at 6% generates $300/year. Killing the higher-APR debt first stops the bigger interest stream faster.
On a typical $25,000 debt mix, avalanche saves $600–$2,400 in interest over snowball and finishes 1–4 months sooner. The exact gap depends on how skewed your APRs are.
Avalanche vs snowball — when each wins
| Scenario | Better method |
|---|---|
| One huge high-APR debt + small low-APR debts | Avalanche |
| Several small debts of similar APR | Snowball (psychological wins) |
| You've quit debt plans before | Snowball (momentum matters) |
| You're a spreadsheet person | Avalanche |
| Debt mix has wide APR spread (5% to 28%) | Avalanche (big savings) |
Avalanche execution checklist
- Sort debts by APR, descending
- Pay minimums on every debt every month
- Send all extra cash to the top-APR debt
- When debt #1 clears, redirect its full payment to debt #2
- Continue down the list — never pay any debt below minimum