Loans & EMI
Debt Payoff Plan
Clear several debts at once — compare paying the highest rate first against the smallest balance first
About the Debt Payoff Plan calculator
Plan the order you clear multiple debts in. Compare the avalanche method (highest rate first) against the snowball method (smallest balance first) and see what each costs in months and rupees.
How the maths works
Payoff Ordering
Each month: pay the minimum on every debt, then put every spare rupee on ONE target. When it clears, its whole payment rolls onto the next target.- Avalanche
- Target the highest interest rate first - mathematically cheapest, always
- Snowball
- Target the smallest balance first - clears accounts fastest, which is what keeps people going
- Minimum payment
- The least each lender will accept without penalising you
- Rollover
- A cleared debt's payment added to the next target, which is what makes either method accelerate
A worked example
Three debts, ₹30,000 a month available
| Credit card | ₹1,80,000 at 42% p.a. |
| Personal loan | ₹3,50,000 at 15% p.a. |
| Car loan | ₹2,20,000 at 9.5% p.a. |
Avalanche clears everything in about 28 months for roughly ₹1.42 lakh of interest. Snowball finishes around the same month but costs about ₹19,000 more, because it leaves the 42% card running longer.
How to use it
- List every debt with its balance, interest rate and minimum payment
- Enter the total you can put towards debt each month
- Pick avalanche or snowball, or compare both
- Read the payoff date and the total interest for each strategy
- Increase the monthly amount and watch the finish line move
What it accounts for
- Handles any number of debts at different rates and balances
- Compares avalanche and snowball on the same set of debts
- Gives a debt-free date, not just a total
- Shows the extra cost of choosing snowball over avalanche, so the trade is explicit
- Models what one extra ₹1,000 a month does to the finish line
Why it is worth working out
- Turns a pile of debts into one dated plan
- Quantifies the cost of the psychologically easier route
- Shows which debt genuinely deserves the next spare rupee
- Makes the effect of a small monthly increase visible and motivating
Questions people ask
What is the difference between the snowball and avalanche methods?
Avalanche targets the highest interest rate first and always costs the least. Snowball targets the smallest balance first, which clears whole accounts sooner and gives visible wins. Avalanche wins on arithmetic; snowball wins on the plans people actually finish.
How much extra does snowball cost?
Usually a few thousand rupees and a month or two, unless you are carrying a large balance at a very high rate. This calculator shows the exact figure for your debts, so the choice is an informed trade rather than a guess.
Should I pay off debt or build an emergency fund first?
Build a small buffer of about one month of essential costs first, then attack the debt, then finish the fund. Without any buffer the next unexpected expense goes straight back on the card you just cleared, and the cycle restarts.
Does closing a card after paying it off help my credit score?
Usually it hurts slightly, because it reduces your total available credit and raises your utilisation ratio on the remaining cards. Keep a paid-off card open with a small recurring charge on it unless the annual fee makes that pointless.
This calculator is for information and education. It is not financial advice — see the disclaimer.