Debt Avalanche Calculator
Simulate month-by-month debt elimination prioritizing your highest interest rate debts first to mathematically minimize total finance charges.
Targets highest interest rate debts first to mathematically minimize total finance charges paid.
Debt Avalanche Prioritization Algorithm
Priority Order = Highest APR to Lowest APR | Priority Payment = Minimum Payment + Extra Monthly + Rolled Cleared Minimums- Step 1: Pay contract minimums on all active accounts.
- Step 2: Attack the single account with the highest interest rate (APR) with all remaining extra cash.
- Step 3: Roll over payments upon debt elimination to eradicate high-interest compounding rapidly.
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- The borrower maintains the discipline to target high-APR balances even if they take longer to celebrate the first payoff.
Frequently Asked Questions
What is the main difference between Debt Snowball and Debt Avalanche?
Snowball prioritizes lowest balances first for psychological wins. Avalanche prioritizes highest interest rates first to mathematically minimize total dollars paid to lenders.
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