Debt Payoff Strategy Planner
Enter every debt you're actually carrying — not one at a time. This runs a real month-by-month simulation of both snowball (smallest balance first) and avalanche (highest rate first), so you see the actual total interest and payoff timeline for each, not a rule of thumb.
Your debts (2)
₹4,50,000 across 2 debts — here's how each strategy plays out
Snowball
Smallest balance first
24
months to debt-free
₹87,873
total interest paid
Payoff order
- 1. Credit Card — month 13
- 2. Personal Loan — month 24
Avalanche
Highest interest rate first
24
months to debt-free
₹87,873
total interest paid
Payoff order
- 1. Credit Card — month 13
- 2. Personal Loan — month 24
Both strategies cost the same total interest for your numbers — pick whichever keeps you motivated.
How this is computed
Both strategies simulate month by month: interest accrues on every balance, minimum payments go out to every debt, and your extra amount goes entirely to the highest-priority debt still standing — smallest balance for snowball, highest rate for avalanche. Once a debt is paid off, its minimum payment doesn't disappear — it rolls into the pool applied to the next debt, which is what makes payoff accelerate over time instead of staying flat. This is a planning model based on the numbers you enter, not personalized financial advice.
Snowball vs avalanche, in plain words
Both strategies pay the minimum on every debt and put every extra rupee on one target debt. When that debt is gone, its minimum payment joins the extra amount and rolls onto the next target, so the payment you throw at debt keeps growing. The only difference is the order.
Snowball targets the smallest balance first. You clear a whole debt sooner, which feels good and keeps many people motivated. Avalanche targets the highest interest rate first. It's the cheapest order mathematically, because the most expensive money is paid off first.
A worked example
Say you owe ₹40,000 on a consumer loan at 16%, ₹1,50,000 on a credit card at 36% and ₹3,00,000 on a personal loan at 14%, with ₹17,000 of minimum payments and ₹10,000 extra each month.
Snowball clears the consumer loan in month 4, an early win, and pays ₹91,827 in total interest. Avalanche goes after the credit card first and pays ₹86,275, saving ₹5,552. Both are debt-free in 22 months. Here the choice comes down to whether that early win is worth ₹5,552 to you.
Getting out of debt faster
The extra monthly amount matters far more than the strategy. Even a few thousand rupees more each month can cut months off the plan, so try changing it above and watch the payoff date move. Stop adding new debt while you pay down the old, especially on credit cards, and never pay only the card's minimum due: at 36% or more a year, the balance barely moves.
Before prepaying a loan, check whether your lender charges a prepayment or foreclosure fee. If you're unsure whether to prepay or invest, the debt vs invest verdict compares both with your own numbers, and the EMI calculator shows what any loan really costs.
To see what different loan sizes cost each month before you borrow again, read EMI for every loan amount. If you're weighing a car loan, the lease vs buy verdict compares the real cost of each. And the financial health checkup shows how your debt load affects your overall financial health score.
Common questions
When your extra payment is large relative to your balances, both strategies clear everything at close to the same pace — the difference is mainly in total interest paid, and in which debt disappears first (a real psychological factor snowball is built around).