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Debt Avalanche Calculator

Estimate your debt payoff timeline using the avalanche method — pay off the highest interest rate debt first to minimize total interest paid. Enter your total debt, monthly payment, and average interest rate for a simplified payoff estimate.

Total Debt Balance

₫

Total Monthly Payment

₫

Average Annual Interest Rate (%)

Fill in the fields above and click Calculate to see your results.

How to use

How it's calculated

Monthly Interest

total_debt * avg_interest_rate / 100 / 12

Interest accruing each month on the total balance

Monthly Principal Payment

max(0, monthly_payment - monthly_interest)

Amount reducing your actual debt balance each month

Months to Pay Off

round(total_debt / principal_payment)

Estimated months to become debt-free (simplified model)

Total Interest Paid

monthly_interest * months_to_payoff

Estimated total interest paid over the payoff period

Examples

50M debt, 2M/month payment, 12% rate

Total Debt Balance:50,000,000
Total Monthly Payment:2,000,000
Average Annual Interest Rate (%):12

80M debt, 4M/month payment, 18% rate

Total Debt Balance:80,000,000
Total Monthly Payment:4,000,000
Average Annual Interest Rate (%):18

Frequently Asked Questions

What is the debt avalanche method?

The debt avalanche method prioritizes paying off the debt with the highest interest rate first while making minimum payments on all others. Once the highest-rate debt is cleared, you roll that payment into the next highest rate. This minimizes the total interest you pay over time.

How does avalanche differ from snowball?

Avalanche targets the highest interest rate first; snowball targets the smallest balance first. Avalanche saves more money mathematically, but snowball provides faster psychological wins by eliminating individual debts sooner. Both work — the best method is the one you stick with.

When should I choose avalanche over snowball?

Choose avalanche if you have high-interest debt (credit cards, personal loans above 15%) and are disciplined enough to stay motivated even when early progress feels slow. If you have several debts with similar interest rates, the difference in total interest saved is small.