Debt Payoff Calculator
Find your debt-free date using the avalanche or snowball method.
Avalanche MethodSnowball MethodMonth-by-Month Plan
Avalanche vs Snowball — Which Is Better?
Both methods work — the best one is the one you'll actually stick to. The Avalanche method targets the debt with the highest interest rate first, minimising total interest paid. It's mathematically optimal and will always save you more money.
The Snowball method targets the smallest balance first regardless of interest rate. You clear debts faster, which creates a psychological "win" that many people find motivating. Research by the Harvard Business Review found snowball users are more likely to pay off all their debts than avalanche users.
Rule of thumb: If you're disciplined and motivated by numbers, use Avalanche. If you need motivational wins to stay consistent, use Snowball.
Frequently Asked Questions
What counts as a "minimum payment"?
The minimum payment is the lowest amount your lender requires each month to keep the account in good standing. For credit cards in India, this is typically 5% of the outstanding balance or ₹200, whichever is higher. For loans, it's the fixed EMI amount.
How much does extra payment really help?
Even ₹500–1,000 extra per month can cut years off your debt repayment timeline and save tens of thousands in interest. The extra amount goes entirely to principal reduction, accelerating payoff significantly.
Should I invest or pay off debt first?
If your debt interest rate is above 8–10%, pay it off first — guaranteed return equals the interest rate avoided. If below 8%, and you have an emergency fund, investing in equity may provide higher returns. Always clear high-interest credit card debt (36–42% per annum) before any investing.
Does paying off debt improve my CIBIL score?
Yes. Reducing your credit utilisation ratio (total balance ÷ total credit limit) and clearing active loans both improve your CIBIL score. Scores typically improve within 1–3 billing cycles after payoff.