Debt Avalanche Calculator

How the Debt Avalanche Works (Highest APR First)

The debt avalanche is a payoff strategy designed to minimize total interest. You make the minimum payment on every debt, then direct all extra money to the balance with the highest annual percentage rate (APR). Once that top-APR debt is gone, you “roll” its full payment onto the next highest APR, and continue down the list. Because you are attacking the most expensive interest first, the avalanche frequently produces the lowest total interest cost and can shorten the overall payoff timeline—especially when one or two debts carry significantly higher rates than the rest.

Steps

1. List each debt with its balance, APR, and minimum payment.
2. Order the list by APR from highest to lowest (tie-breaker: smaller balance first).
3. Pay minimums on all debts; direct any extra amount to the highest APR debt.
4. When a debt is cleared, roll its entire payment to the next highest APR.

Why choose Avalanche?

Compared to the “snowball” approach, avalanche typically saves more money over time because it prioritizes interest cost. If motivation is not an issue and you can stay consistent, avalanche is a strong default. It is particularly effective for credit cards and other revolving balances with double-digit APRs. If you find yourself losing steam without quick wins, consider a hybrid: use avalanche ordering, but when two balances are close in APR you may knock out the smaller one first for a psychological boost.

Quick example

Imagine three debts: Card A (£2,000 at 24.9% APR, £60 min), Card B (£1,200 at 18.9%, £35 min), and Car Loan (£6,000 at 6.5%, £180 min). With £150 extra each month, avalanche targets Card A first. After Card A is paid off, its £60 minimum plus the £150 extra roll onto Card B. Once Card B is cleared, the combined payment goes to the car loan. You’ve reduced the time high-APR interest can compound, lowering your total cost.

Tips

• Automate payments to avoid missed due dates.
• Keep a small emergency buffer so surprises don’t derail your plan.
• Re-run your plan when APRs change or a teaser rate expires.
• When a debt hits zero, resist “lifestyle creep”—roll the full amount forward.

Bottom line: Avalanche is a clear, math-forward way to crush high-interest debt first and save the most on interest over time.