If you have multiple debts (credit card, personal loan, car loan), the order you pay them off matters. The avalanche method (highest rate first) saves the most money mathematically. The snowball method (smallest balance first) gives faster psychological wins. This calculator runs both for your specific debt mix and shows the rupee difference.
What is Debt Payoff?
Most people with multiple debts pay the minimum on each and direct any extra cash randomly — usually toward whichever debt feels biggest. Both the avalanche and snowball methods are systematic alternatives that almost always finish faster and cost less.
Avalanche — pay minimums on all, direct extra to the highest-APR debt. Mathematically optimal: minimises total interest. Snowball — pay minimums on all, direct extra to the smallest-balance debt. Behaviourally easier: closing accounts gives momentum and motivation.
How the comparison runs
Each month, the calculator pays each debt's minimum (~5% for cards, EMI for loans), accrues interest on the remaining balance, then directs the surplus to the priority debt. Avalanche prioritises by APR descending; snowball by balance ascending.
When the priority debt clears, its full payment (minimum + surplus) rolls forward to the next priority — the 'snowball' or 'avalanche' effect. By the end, all debts are paid; the difference is months saved and total interest paid.
- Avalanche priority
- Highest APR first—minimises total interest
- Snowball priority
- Smallest balance first—fastest debt-elimination momentum
How to use this calculator
Enter each debt — balance and APR
Card 1: ₹50,000 at 42%. Card 2: ₹30,000 at 38%. Personal loan: ₹3,00,000 at 14%. Etc. The calculator handles up to 5 debts simultaneously.
Enter the extra monthly amount you can pay
Beyond minimum dues across all debts, how much surplus can you direct? Even ₹5,000 extra per month dramatically shortens payoff vs paying just minimums.
Read the comparison
Calculator shows months to debt-free for each method, total interest paid, and the rupee savings of avalanche over snowball. Pick whichever you'll actually stick to.
When to use it
Multiple credit cards plus a personal loan
Common pattern: 2-3 cards at 36-46% + 1 personal loan at 14%. Avalanche aggressively kills cards first (highest rates), saving the most interest. Snowball can feel better if smallest card is tiny.
Family financial reset
If you've inherited an inconsistent debt mix from a partner or family situation, run the calculator to see the optimal payoff order rather than chipping away randomly.
Choosing whether to consolidate first
Sometimes a personal-loan-to-pay-off-cards consolidation (12-18% covering 36-46% card debt) beats both avalanche and snowball on the original mix. Use the credit card payoff calculator alongside this to compare.
Common mistakes to avoid
Spreading the extra payment evenly across all debts
Even ₹500 extra to each debt is far less effective than ₹5,000 concentrated on one. Concentration finishes the priority debt sooner and unleashes its full payment to attack the next.
Picking snowball when no card is small
Snowball's behavioural benefit comes from quick early wins. If your smallest debt is still ₹2 lakh and takes 18 months to clear, you don't get the momentum. In that case, just go avalanche.
Skipping the emergency fund while paying debt aggressively
If a medical emergency hits and you have no cash buffer, you'll go straight back into card debt. Keep at least 1 month of expenses liquid before going aggressive on debt payoff.