What is debt avalanche?

It focuses extra payments on the highest-interest debt first.

Finance Toolkit

Debt Avalanche Calculator

Prioritize highest-interest balances to minimize cost.

Loan Amount / Starting BalanceStarting principal, debt, or investment amount.

$40,000

Interest RateAPR for loans or liabilities.

6.5%

Monthly ContributionExtra monthly payment or investment contribution.

$500

YearsProjection horizon in years.

Inflation RateExpected annual inflation for purchasing power adjustment.

2.5%

Expected ReturnProjected annual investment return.

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Monthly Payment

$1,035

Required monthly payment including extra payoff amount.

Payoff Time

3.67 yrs

Estimated time needed to eliminate the debt.

Interest Saved

$16,800

Estimated interest saved by accelerating repayment.

What is debt avalanche?
It focuses extra payments on the highest-interest debt first.