Debt Payoff — Avalanche Calculator
Debt Payoff - Avalanche is evaluated from Extra Monthly Payment, Debt 1 - Balance and Debt 1 - Annual Rate. The calculation reports Months to Pay Off All Debt, Total Interest Paid and Interest Saved vs Minimums.
Results
About the Debt Payoff — Avalanche Calculator
The calculator uses a custom php logic configuration. Each reported value is read as a direct evaluation of the stored rules with the declared field formats and units.
Formula basis:
1. Rank debts by APR (highest first) - the avalanche order.
2. Apply all extra payment to Debt #1 (highest APR) each month.
Total Interest Saved = Interest under minimum-payments-only scenario - Interest under avalanche scenario.
Interpret the outputs in the order shown by the result fields. Optional inputs affect only the outputs that depend on those variables.
Formula & How It Works
The calculation applies the following relations exactly as recorded in the metadata: 1. Rank debts by APR (highest first) - the avalanche order. 2. Apply all extra payment to Debt #1 (highest APR) each month. Total Interest Saved = Interest under minimum-payments-only scenario - Interest under avalanche scenario. Each output field is produced by substituting the supplied inputs into the relevant relation and then applying the declared rounding or text format.
Worked Examples
Example 1: Classic 3-Debt Avalanche
Inputs
With Extra Monthly Payment = 200, Debt 1 - Balance = 5,000, Debt 1 - Annual Rate = 24.99 and Debt 1 - Min Payment = 125 as the stated inputs, the result is Months to Pay Off All Debt = 48 months, Total Interest Paid = $9,954.62 and Interest Saved vs Minimums = $0. Each value corresponds to the declared output fields.
Example 2: Heavy Credit Card Debt
Inputs
With Extra Monthly Payment = 300, Debt 1 - Balance = 6,000, Debt 1 - Annual Rate = 28.99 and Debt 1 - Min Payment = 150 as the stated inputs, the result is Months to Pay Off All Debt = 44 months, Total Interest Paid = $11,881.29 and Interest Saved vs Minimums = $0. Each value corresponds to the declared output fields.
Example 3: Mixed Debt — High Rate Disparity
Inputs
With Extra Monthly Payment = 150, Debt 1 - Balance = 3,000, Debt 1 - Annual Rate = 26.99 and Debt 1 - Min Payment = 80 as the stated inputs, the result is Months to Pay Off All Debt = 49 months, Total Interest Paid = $7,488.58 and Interest Saved vs Minimums = $0. Each value corresponds to the declared output fields.
Example 4: No Extra Payment — Avalanche Still Helps
Inputs
With Extra Monthly Payment = 0, Debt 1 - Balance = 4,000, Debt 1 - Annual Rate = 22.99 and Debt 1 - Min Payment = 100 as the stated inputs, the result is Months to Pay Off All Debt = 143 months, Total Interest Paid = $17,898.31 and Interest Saved vs Minimums = $0. Each value corresponds to the declared output fields.
Common Use Cases
- Find the mathematically optimal order to pay off multiple debts
- See how much interest you save vs minimum payments only
- Compare avalanche vs snowball method for your debts