The debt avalanche method pays off debt in order of interest rate to minimize the total interest you pay over time. Since you pay off the highest interest rates first, it’s the mathematically optimal payoff strategy, but it only works if you can track it consistently.
This page features a free debt avalanche planner spreadsheet for Google Sheets. It lets you list all your debts, see them ranked by interest rate, track your payments, calculate your payoff timeline, and visualize your progress over time.
For people using Tiller’s automated bank feed, the planner works alongside your existing transaction data. Your debt payments categorized in Tiller appear in your spending summaries, giving you a complete picture of both your monthly budget and your debt payoff progress in a single spreadsheet.
What the Debt Avalanche Planner includes
The planner is a Google Sheets template organized around the core information you need to execute the avalanche strategy:
Debt list sorted by interest rate
Enter each debt with its current balance, interest rate (APR), minimum monthly payment, and creditor name. The template sorts them by interest rate in descending order, so your payoff-priority list is generated automatically.
Extra payment tracker
Enter the total extra amount you can put toward debt each month, beyond your minimum payments. The template applies it to your highest-rate debt first and shows how each extra dollar accelerates your payoff.
Payoff timeline calculator
Based on your current balances, interest rates, minimum payments, and extra payment amount, the template calculates when each debt will be paid off and your total debt-free date.
Interest savings calculation
The template shows the total interest you’ll pay under the avalanche strategy and how much you’ll save compared to making only minimum payments. This number is often the most motivating figure on the sheet.
Progress tracking
This section is for recording actual monthly payments, updating balances, and tracking how your total debt decreases over time. It includes a chart showing your total balance trending toward zero.
How to use the Debt Avalanche Tracker
Step 1: Copy the template
Copy the Debt Avalanche Tracker to your Google Drive. No sign-in is required to copy. The template saves to your Google Drive and is yours to keep and modify.
Step 2: Enter your debts
List every debt — credit cards, student loans, auto loans, personal loans — with the current balance, interest rate, and minimum monthly payment. The template will automatically sort them by interest rate.
Step 3: Enter your extra payment amount
Decide how much you can put toward debt each month beyond your minimums. Even an extra $50–$100/month makes a meaningful difference in the payoff timeline and total interest paid.
Step 4: Review your payoff timeline
The template calculates your debt-free date and total interest cost based on your entries. Experiment with different extra payment amounts to see how increasing your contribution accelerates the timeline.
Step 5: Track payments monthly
Each month, record the actual payments you made and update your balances. The progress chart updates automatically.
The Debt Avalanche Planner vs. the Debt Payoff Planner Template
Tiller offers two debt tracking options depending on your situation:
Debt Avalanche Planner (this page)
A focused Google Sheets template for the avalanche method, specifically. This is a good starting point if you want to set up tracking quickly without connecting your bank accounts.
Tiller’s Debt Payoff Planner
A more comprehensive template that connects to Tiller’s automated bank feed. Your account balances update automatically from your connected accounts. It supports both the avalanche and snowball methods and integrates with the Foundation Template’s full budgeting system. Best for Tiller subscribers who want their debt tracker to stay current automatically alongside their full financial picture.
Avalanche vs. snowball — choosing the right method
The debt avalanche method minimizes total interest paid, so it’s the mathematically optimal strategy. The debt snowball method pays off the smallest balance first to give you a psychological lift and additional motivation, though it usually incurs more interest.
Choose avalanche if:
You’re motivated by efficiency and long-term savings. You can stay disciplined even when progress on the highest-rate debt feels slow. You want to minimize the total amount you pay to get out of debt.
Choose snowball if:
You need quick wins to stay motivated. Your highest-rate debt also has a high balance that will take years to clear. You’ve tried the avalanche before and abandoned it.
Many people use a hybrid approach — primarily avalanche, but occasionally knocking out a small balance for a psychological boost. The planner can be adapted for either method. For a full explanation of how the debt avalanche method works and how to implement it with Tiller, see the complete guide.
Frequently asked questions
Q: What is a debt avalanche planner spreadsheet?
A debt avalanche planner spreadsheet is a tracker that lists your debts in order of interest rate — highest to lowest — and calculates your payoff timeline based on making minimum payments on all debts while directing any extra monthly payment toward the highest-rate debt first. It helps you visualize your payoff progress, see how much interest you’ll save, and track your actual monthly payments.
Q: Is the debt avalanche or debt snowball method better?
The debt avalanche method saves more money in total interest paid, so it’s the mathematically optimal strategy. The debt snowball method pays off smaller balances first, which provides faster psychological wins but typically costs more in interest over time. The best method is the one you’ll actually stick with.
Q: How do I calculate my debt-free date using the avalanche method?
The Debt Avalanche Planner spreadsheet does this calculation automatically. Enter each debt’s current balance, interest rate, and minimum payment, then enter the total extra amount you can put toward debt each month. The template calculates when each debt will be paid off and your overall debt-free date based on those inputs.
Q: Can I use this planner if I’m also using Tiller for budgeting?
Yes. The standalone planner works alongside Tiller’s budgeting system because they’re separate sheets that can live in the same workbook. If you’re a Tiller subscriber, the Debt Payoff Planner template is a more integrated option. It connects directly to your account balances from Tiller’s automated bank feed, so your debt balances update automatically rather than requiring manual updates each month.
Q: Does this template work in Excel as well as Google Sheets?
The Debt Avalanche Planner is a Google Sheets template. For an Excel-compatible option, Tiller’s Debt Payoff Planner template supports both Google Sheets and Excel and includes the same avalanche and snowball functionality with the added benefit of automated balance updates from connected bank accounts.
Q: How often should I update my debt avalanche planner?
Monthly. After you’ve made all your debt payments for the month, enter the actual payments made and update your current balances. This monthly update takes about five minutes and keeps your payoff timeline accurate. With Tiller’s automated Debt Payoff Planner, your balances update daily automatically, reducing the monthly update to a quick review rather than manual data entry.
