Debt Avalanche Calculator

What is the Debt Avalanche Calculator?

The debt avalanche method pays the minimum on every debt and sends all extra money to the debt with the highest interest rate. Mathematically, this is the cheapest way to become debt-free, because the most expensive debt is eliminated first.

Enter each debt with its balance, rate and minimum payment, plus your extra monthly payment. The calculator simulates the payoff month by month and shows your debt-free date, the total interest, the payoff order and how much more the snowball method would cost.

How to use the Debt Avalanche Calculator

1. Your Debts (one per line: name, balance, rate %, minimum payment) — one debt per line: name, outstanding balance, interest rate %, minimum monthly payment. (sample: Credit card, 80000, 36, 4000 Personal loan, 200000, 14, 7000 Bike loan, 50000, 11, 2500)
2. Extra Monthly Payment (₹) — money available each month beyond the minimums. (sample: 5,000)
3. Press Plan Debt Avalanche (results also refresh as you type). The result card shows the Debt-Free In, along with Total interest paid, Payoff order, Snowball method interest and Interest saved vs minimum payments only.

Formula used

Each month: Balance = Balance × (1 + r ÷ 12) − Payment

• Payment = the minimum on every debt, plus the extra amount and freed-up minimums on the highest-rate remaining debt

Credit cards (often 36–42% a year) are usually first in the avalanche order.

Worked example

These are the sample values already filled in the calculator above, and the result it returns for them:

Tips for using the Debt Avalanche Calculator

• Even a small extra payment shortens the payoff dramatically on high-interest debt.
• Use windfalls such as bonuses or tax refunds on the top debt in the order.
• Keep a small emergency fund so a surprise expense does not push you back onto credit cards.