MCPCalc

Debt Avalanche Calculator

Calculate debt payoff using the avalanche method (highest interest rate first).

Scratchpad (not saved)

$

Extra amount per month to throw at debts

Debt 1
$

Balance of first debt

%

Interest rate of first debt

$

Minimum monthly payment for first debt

Debt 2
$

Balance of second debt

%

Interest rate of second debt

$

Minimum monthly payment for second debt

Debt 3
$

Balance of third debt

%

Interest rate of third debt

$

Minimum monthly payment for third debt

What This Calculator Does

Design an interest-efficient payoff plan by directing extra payments to the highest-rate balances first.

It combines Debt 1 Balance, Debt 1 Rate, Debt 1 Min Payment, Debt 2 Balance to estimate Debt-Free In, Payoff Order, Total Starting Balance.

Formula & Method

Core equations: Debts are sorted by interest rate (highest first). Each month: I_k = B_k \times \frac{r_k}{12} Minimum payments are applied to all debts, and any extra payment goes to the highest-rate debt. When a debt is paid off, its freed payment cascades to the next highest-rate debt. Inputs are applied in base units, then derived metrics are computed from the same equations and rounded for display.

Notation used in the formulas: R = Debt-Free In; x_{1} = Debt 1 Balance; x_{2} = Debt 1 Rate; x_{3} = Debt 1 Min Payment; x_{4} = Debt 2 Balance; x_{5} = Debt 2 Rate; x_{6} = Debt 2 Min Payment.

Method summary: inputs are normalized to consistent units, core equations are evaluated, then secondary values are derived and rounded for display.

Use this when minimizing total interest is the top priority and you can stay disciplined through longer payoff sequences.

Inputs Used

  • Debt 1 Balance: Balance of first debt
  • Debt 1 Rate: Interest rate of first debt
  • Debt 1 Min Payment: Minimum monthly payment for first debt
  • Debt 2 Balance: Balance of second debt
  • Debt 2 Rate: Interest rate of second debt
  • Debt 2 Min Payment: Minimum monthly payment for second debt
  • Debt 3 Balance: Balance of third debt
  • Debt 3 Rate: Interest rate of third debt
  • Debt 3 Min Payment: Minimum monthly payment for third debt
  • Extra Monthly Budget: Extra amount per month to throw at debts

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