What this calculator helps you do
Model a debt plan that sends extra money to the highest interest rate first. The calculation runs entirely in your browser; SENNA Finance does not receive the values entered into this tool.
Worked example
Using the default example—debt 1 balance of $1,200, debt 1 apr of 18%, debt 1 minimum of $50, debt 2 balance of $4,800, debt 2 apr of 12%—the calculator returns debt-free in of 2 years 5 months; total starting debt: $17,000.00; estimated total interest: $1,715.82. Change the assumptions to match your own case rather than relying on the example.
Formula and calculation basis
Inputs are converted to the periodic units required by the formula. Results are calculated with full JavaScript numeric precision and rounded only for display.
How to interpret the result
The avalanche method generally targets interest efficiency, but progress may feel slower when the highest-rate balance is large.
Common mistakes to avoid
- Comparing plans with different total monthly budgets.
- Ignoring promotional-rate expiration.
- Failing to maintain minimum payments on every debt.
Limits and assumptions
The model supports three debts, constant rates, fixed minimums, and no new borrowing.
Outputs are estimates, not contractual quotations, regulated disclosures, tax advice, investment advice, or a substitute for professional review.
Frequently asked questions
Why target the highest rate?
Each extra unit paid toward the highest rate usually avoids more future interest.
Is avalanche always faster?
Not necessarily in account closures, but it commonly reduces interest cost.
Can I compare with snowball?
Yes. Enter identical debts and budget in both calculators.
Sources and reference context
External references provide educational context and do not imply endorsement of SENNA Finance.