Debt Payoff Calculator for India
Quick answer
For most salaried Indians with a mix of high-rate credit card debt and lower-rate EMI loans, avalanche saves more interest.
Snowball wins when your debts have similar rates and you need motivation to stay on track. Add your loans, pick a strategy, and see your exact debt-free date.
How to use
- 1Add each debt — name, outstanding balance, interest rate, and monthly minimum payment.
- 2Enter take-home pay, needs (excluding EMIs), and wants to see your budget split.
- 3Pick snowball or avalanche and compare which clears debt faster.
- 4Schedule lump-sum prepayments from bonuses or tax refunds.
- 5Review the payoff timeline and total interest saved.
What changes your debt-free date
Interest rate spread
The bigger the gap between your highest and lowest rate loans, the more avalanche saves over snowball.
Extra monthly budget
Even ₹3,000–5,000 above your current EMIs can shave 12–24 months off your payoff.
Lump-sum prepayments
A ₹1 lakh prepayment early on a high-rate loan saves far more than the same amount later.
Number of debts
More debts means more EMIs locked as minimums. Clearing small debts first frees up budget.
Frequently asked questions
What is the debt snowball method?
The debt snowball method means paying off your smallest loan balance first while making minimum payments on everything else. Once the smallest debt is cleared, you roll that freed-up EMI into the next smallest.
What is the debt avalanche method?
The debt avalanche method targets the loan with the highest interest rate first, regardless of balance. Mathematically, avalanche usually saves you the most interest.
Which is better for Indians — snowball or avalanche?
If you have high-rate credit card debt alongside lower-rate loans, avalanche saves significantly more. If your rates are similar and you need motivation, snowball works better.
How much can I save by changing my debt repayment strategy?
A typical salaried Indian with 3–4 loans can save ₹20,000 to ₹2 lakh in interest by switching from minimum payments to snowball or avalanche — even with just ₹5,000 extra per month.
Should I prepay my loans with a bonus or keep investing?
If your loan interest rate is higher than your expected post-tax investment return, prepay the loan. For home loans at 8–9%, use Kedil's Prepay vs Invest calculator.
Does making lump-sum payments really help?
Yes. A single ₹50,000 lump-sum on a ₹5 lakh personal loan at 14% can shorten your payoff by 4–6 months and save ₹15,000–₹25,000 in interest.
Assumptions
Interest
Calculated monthly on reducing balance using the stated annual rate.
Snowball
Debts ordered by ascending balance; freed EMI rolls into next smallest.
Avalanche
Debts ordered by descending interest rate; freed EMI rolls into next highest-rate.
Limits
No prepayment penalties, processing fees, or inflation adjustments are modeled.