Enter the total amount you can commit to debt payments each month (including all minimums).
2. Debt Inventory
List your debts. The calculator will automatically prioritize the debt with the highest APR.
Your Avalanche Results
Time to Debt-Free0 months
Total Cost Paid0.00
Understanding the Debt Avalanche Method
The debt avalanche method is a mathematically optimized strategy for paying off debt. Unlike the debt snowball method, which focuses on small psychological wins, the avalanche method focuses on minimizing the total amount of money lost to growth rates (APR).
How Does the Avalanche Method Work?
This strategy follows a simple but strict set of steps:
Inventory: List every debt you owe, noting the current balance and the APR (Annual Percentage Rate).
Minimums: Pay the minimum required amount on every single debt to avoid late fees and credit damage.
Identify Target: Rank your debts from the highest APR to the lowest.
Aggressive Payment: Direct every extra cent in your monthly budget toward the debt with the highest APR.
The Avalanche: Once the top debt is eliminated, take its entire payment amount and add it to the next debt on the list.
Avalanche vs. Snowball: Which is Better?
While the Snowball Method pays off the smallest balances first to build momentum, the Avalanche Method is the fastest way to get out of debt. Because you tackle the most "expensive" debt first (the one accruing the most cost relative to its size), you save the most money over time and finish your debt-free journey months or even years earlier.
Example Scenario
Imagine you have two debts:
Debt A: 5,000 at 24% APR (Min: 150)
Debt B: 10,000 at 6% APR (Min: 200)
If you have 1,000 total to pay each month, the avalanche method dictates you pay the 200 minimum on Debt B and the remaining 800 on Debt A. By attacking the 24% APR first, you stop that balance from compounding rapidly, which drastically reduces your total repayment period.
function calculateAvalanche() {
var monthlyBudget = parseFloat(document.getElementById('monthlyBudget').value);
var names = document.getElementsByClassName('debt-name');
var balances = document.getElementsByClassName('debt-balance');
var aprs = document.getElementsByClassName('debt-apr');
var mins = document.getElementsByClassName('debt-min');
var debts = [];
var totalMinRequired = 0;
for (var i = 0; i 0) {
debts.push({
name: names[i].value || ("Debt " + (i + 1)),
balance: b,
apr: a,
min: m,
totalPaid: 0
});
totalMinRequired += m;
}
}
if (debts.length === 0) {
alert("Please enter at least one debt with a balance.");
return;
}
if (monthlyBudget < totalMinRequired) {
alert("Your monthly budget is lower than the sum of your minimum payments (" + totalMinRequired.toFixed(2) + "). Please increase your budget.");
return;
}
// Sort debts by APR descending (The Avalanche Rule)
debts.sort(function(a, b) {
return b.apr – a.apr;
});
var months = 0;
var totalInterestPaid = 0;
var payoffOrder = [];
var tempDebts = JSON.parse(JSON.stringify(debts)); // Deep copy for simulation
// Safety break at 600 months (50 years)
while (months < 600) {
var activeDebts = 0;
var availableFunds = monthlyBudget;
var currentMonthInterest = 0;
// 1. Calculate Interest for the month and determine active debts
for (var j = 0; j 0) {
var monthlyRate = (tempDebts[j].apr / 100) / 12;
var interest = tempDebts[j].balance * monthlyRate;
tempDebts[j].balance += interest;
currentMonthInterest += interest;
totalInterestPaid += interest;
activeDebts++;
}
}
if (activeDebts === 0) break;
// 2. Pay Minimums First
for (var j = 0; j 0) {
var payment = Math.min(tempDebts[j].balance, tempDebts[j].min);
tempDebts[j].balance -= payment;
availableFunds -= payment;
if (tempDebts[j].balance 0) {
for (var j = 0; j 0) {
var extraPayment = Math.min(tempDebts[j].balance, availableFunds);
tempDebts[j].balance -= extraPayment;
availableFunds -= extraPayment;
if (tempDebts[j].balance <= 0 && !tempDebts[j].done) {
tempDebts[j].done = true;
payoffOrder.push(tempDebts[j].name + " (Month " + (months + 1) + ")");
}
if (availableFunds <= 0) break;
}
}
}
months++;
}
// Display results
document.getElementById('results-area').style.display = 'block';
document.getElementById('total-months').innerText = months + " months (" + (months/12).toFixed(1) + " years)";
document.getElementById('total-interest').innerText = "Cost: " + totalInterestPaid.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
var orderHtml = "Payoff Priority:";
for (var k = 0; k < payoffOrder.length; k++) {
orderHtml += "