Calculate debt payoff timeline using the avalanche method. Free online debt avalanche calculator with formula, examples, and FAQ for cost-efficient debt elimination.
The debt avalanche method focuses on paying off debts with the highest interest rate first, regardless of balance size. This is the mathematically optimal approach — it minimizes the total interest paid over your debt repayment journey. You make minimum payments on all debts and direct extra money toward the highest-rate debt. Once that's paid, you move to the next highest rate.
Pay minimums on all debts → Apply extra to highest interest rate → When paid, redirect to next highest rate → Repeat until debt-freeBy targeting the highest interest rate first, you reduce the compounding effect of expensive debt. Each dollar saved from high-interest debt is worth more than a dollar saved from low-interest debt. This method requires discipline since you may not see quick wins, but it's the most cost-efficient strategy.
| Input | Output |
|---|---|
| Debt1: $5,000 @ 18% ($150/mo), Debt2: $10,000 @ 8% ($200/mo), Extra: $300/mo | Payoff in ~28 months, Total Interest: ~$2,100 |
| Debt1: $3,000 @ 24% ($120/mo), Debt2: $8,000 @ 6% ($180/mo), Extra: $400/mo | Payoff in ~18 months, Total Interest: ~$850 |
| Debt1: $7,000 @ 15% ($200/mo), Debt2: $12,000 @ 10% ($300/mo), Extra: $500/mo | Payoff in ~22 months, Total Interest: ~$1,900 |