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Debt Payoff Calculator

Plan how to clear several loans and cards with one monthly budget, by avalanche or snowball.

By Nitin Raturi · Last reviewed

Your debts

How to use the Debt Payoff Calculator

Plan how to clear several debts with one monthly budget.

  1. List each debt with its balance, annual rate and minimum payment.
  2. Enter what you can pay each month on top of the minimums.
  3. Choose avalanche or snowball.
  4. Read the payoff month, total interest and the order debts are cleared.

Good to know

  • When a debt is cleared, its minimum moves to the next one.
  • Your list stays in the page address after #, which is not sent to the server.

Your debts

Each loan or card you are paying off, one per line.

How to fill it in

  • Write: name, balance, annual interest rate, minimum monthly payment.
  • Use digits only in amounts: 80000, not 80,000. Up to 10 debts.
  • For a card quoted per month, multiply by 12: 3.5% a month is 42% a year.

Example

RBI’s example card balance of ₹10,000 at 2% a month adds ₹200 interest in a month.

Keep in mind: Interest is worked monthly at the annual rate ÷ 12; card issuers may charge daily and add fees and GST.

One per line: name, balance, annual rate %, minimum payment.

Extra each month

What you can pay on top of all the minimums, every month.

How to fill it in

  • Enter ₹0 or more. It always goes to the debt at the top of the order.

Example

With ₹5,000 extra the sample debts clear in 24 months; with none, 34.

Order

Order

Which debt gets the extra money first.

How to fill it in

  • Avalanche: highest interest rate first. It costs the least interest.
  • Snowball: smallest balance first. Debts disappear sooner, which some people find motivating.

Example

For the sample debts, avalanche saves ₹11,366 of interest over snowball.

Debt-free in (avalanche)

2 years

Paying ₹22,000 a month clears every debt in 2 years, with ₹76,450 of interest. Snowball would cost ₹87,816.

1. Credit card
month 11, ₹17,520 interest
2. Personal loan
month 24, ₹52,344 interest
3. Bike loan
month 23, ₹6,586 interest
Total paid
₹5,16,450

Interest monthly at the annual rate ÷ 12; fees, GST and rate changes are not included. A cleared debt’s minimum moves to the next debt.

ChangelogHow we test this calculatorEmbed this calculator

How this calculator works

  1. Step 1Interestrate ÷ 12Each debt adds a month of interest.
  2. Step 2Minimumsevery debtEvery open debt gets its minimum payment.
  3. Step 3Extratop of the listThe rest of the budget goes to the first debt in order.

You pay the same total every month. When a debt is cleared, its minimum is added to the payment on the next debt, so payments grow as debts disappear.

Worked example: three debts, ₹5,000 extra

Avalanche: highest rate first
Budget
Σ minimums + extra
  1. Monthly budget₹4,000 + ₹10,000 + ₹3,000 + ₹5,000₹22,000
  2. Credit card (42%)cleared in month 11₹17,520 interest
  3. Personal loan (14%)cleared in month 24₹52,344 interest
  4. Bike loan (11%)cleared in month 23₹6,586 interest
  5. Debt-free₹76,450 interest24 months

The 42% card is targeted first, then the 14% loan, then the 11% bike loan. Interest on all three in the first month is ₹6,850.

Avalanche or snowball

  • Avalanche₹76,450Highest rate first. Least interest.
  • Snowball₹87,816Smallest balance first. The bike loan goes first.

Here avalanche saves ₹11,366 of interest; snowball clears a debt sooner.

What the extra payment does

  • Minimums only34 months
  • ₹5,000 extra24 months
Months to clear the sample debts

With minimums only, the interest is ₹1,31,434.

Assumptions and limits

  • Monthly interestAnnual rate ÷ 12. RBI’s example of ₹10,000 at 2% a month gives ₹200.
  • No GST or feesCard GST on interest and late fees are left out.
  • Fixed ratesRates and minimums stay the same.
  • No new spendingAssumes nothing new is added to the debts.

A payoff plan sets the order. Rates, consolidation and single loans have their own tools.

For one card’s payoff time and interest, use the credit card calculator. To test replacing several debts with one loan, try the debt consolidation calculator.

To see how debt compares with what you own, the debt ratio calculator gives debt-to-assets and debt-to-equity.

Common mistakes

  • Mistake: Entering a card’s monthly rate as the annual rate.

    Instead: Multiply it by 12: 3.5% a month is 42% a year.

  • Mistake: Cutting a payment once a debt is cleared.

    Instead: Keep paying the same total so it rolls over.

  • Mistake: Paying only minimums on a card.

    Instead: Card interest is usually the highest; it grows fast.

Checking the method

Single debts are re-worked with the closed-form payment-count formula, and several debts with a separate Decimal cash queue.

Read how we test our calculators, or browse more money calculators.

Frequently asked questions

What is the debt avalanche method?

Pay minimums on every debt and put all extra money on the highest-rate debt. For the sample debts it costs ₹76,450 of interest.

What is the debt snowball method?

Put the extra money on the smallest balance first. The same debts cost ₹87,816, ₹11,366 more.

How much does an extra payment help?

With ₹5,000 extra the sample debts clear in 24 months instead of 34.

How do I enter a credit card rate quoted per month?

Multiply by 12. RBI’s example of ₹10,000 at 2% a month (24% a year) adds ₹200 in a month.

Are GST and late fees included?

No. Card issuers add GST on interest and may charge daily, so real costs can be higher.

Sources and methodology

The formulas are standard time-value-of-money results. We check every figure against golden values worked out independently, by closed form and by month-by-month simulation; see the methodology.

Written and maintained by Nitin Raturi, a software engineer (about the author). Last reviewed 4 Nov 2026; next review due by . Found an error? Tell us.

Changelog

  • : Initial release.

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