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

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About the Debt Payoff — Avalanche Calculator

Debt Payoff - Avalanche is treated here as a quantitative relation between Extra Monthly Payment, Debt 1 - Balance, Debt 1 - Annual Rate and Debt 1 - Min Payment and Months to Pay Off All Debt, Total Interest Paid and Interest Saved vs Minimums.

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

extra_payment: 200 debt_1_balance: 5000 debt_1_rate: 24.99 debt_1_min: 125 debt_2_balance: 8500 debt_2_rate: 19.99 debt_2_min: 170 debt_3_balance: 12000 debt_3_rate: 8.5 debt_3_min: 230
Months to Pay Off All Debt: 48 months. Total Interest Paid: $9,954.62. Interest Saved vs Minimums: $0

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

extra_payment: 300 debt_1_balance: 6000 debt_1_rate: 28.99 debt_1_min: 150 debt_2_balance: 9000 debt_2_rate: 22.99 debt_2_min: 180 debt_3_balance: 4500 debt_3_rate: 20.24 debt_3_min: 110 debt_4_balance: 7000 debt_4_rate: 18.99 debt_4_min: 140
Months to Pay Off All Debt: 44 months. Total Interest Paid: $11,881.29. Interest Saved vs Minimums: $0

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

extra_payment: 150 debt_1_balance: 3000 debt_1_rate: 26.99 debt_1_min: 80 debt_2_balance: 15000 debt_2_rate: 7.5 debt_2_min: 285
Months to Pay Off All Debt: 49 months. Total Interest Paid: $7,488.58. Interest Saved vs Minimums: $0

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

extra_payment: 0 debt_1_balance: 4000 debt_1_rate: 22.99 debt_1_min: 100 debt_2_balance: 6000 debt_2_rate: 17.99 debt_2_min: 120 debt_3_balance: 2500 debt_3_rate: 15.99 debt_3_min: 65
Months to Pay Off All Debt: 143 months. Total Interest Paid: $17,898.31. Interest Saved vs Minimums: $0

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