Debt Payoff Calculator: Avalanche vs Snowball

Every month you pay the minimum on every debt. Whatever is left of your budget, including the extra amount you enter, goes to one target debt. When that debt is cleared, the money that was going to it rolls on to the next target, so the payment keeps growing as debts fall away.

Avalanche targets the debt with the highest interest rate first. It always costs the least interest, because rupees go first to the debt that is growing fastest. In India that is usually a credit card balance on revolving credit.

Snowball targets the smallest balance first. It usually costs a little more interest, but you close accounts sooner, and many people find those early wins help them stick with the plan. The calculator shows exactly how much the difference is for your debts.

Interest is added monthly on each balance at the annual rate divided by 12. If a minimum payment does not cover the interest added each month, the debt is flagged: on its own that balance would keep growing. Credit card minimum dues are typically a small percentage of the outstanding, so paying only the minimum can take years.

The plan assumes no new spending on the cards, fixed rates, and fixed minimum payments as entered. It leaves out late fees, GST on interest and charges, and prepayment charges, so treat the dates as estimates and recheck them every few months.