Finance & Investment · Planning
Debt Snowball & Avalanche Calculator
List your credit cards and loans with their balances, interest rates and minimum payments, set what you can pay in total each month, and see when you'll be debt-free with the avalanche (highest rate first) or snowball (smallest balance first) method — and how much interest each saves over paying minimums.
Also listed inLoans & Debt
Your inputs
Quick start — try a typical case
Time to pay off: you choose what to pay each month. Payment needed: you choose when to be debt-free, and we work out the monthly payment.
Use the current outstanding, the yearly interest rate, and the minimum due (or EMI) on each.
₹ 50 thousand
At least the sum of the minimums. Everything above that goes to one debt at a time.
Your result Live
Debt-Free In — Avalanche
1 year 10 months
₹1,20,687 interest on ₹9,40,000 of debt, paying ₹50,000 a month
- Snowball Instead
- 1 year 10 months · ₹1,29,782 interest
- Interest Saved vs Snowball
- ₹9,095
- Minimum Payments Only
- 3 years 1 month · ₹2,31,671 interest
- Interest Saved vs Minimums
- ₹1,10,984
- First Debt Cleared
- Credit card — in 8 months
- Total Paid
- ₹10,60,687
- Principal · 89%₹9,40,000
- Interest · 11%₹1,20,687
Payoff order — Avalanche (highest rate first)
4 rowsAvalanche always costs the least interest; snowball clears small debts sooner, which many people find keeps them motivated.
Assumes no new borrowing, fixed rates, and interest charged monthly at rate ÷ 12 on the outstanding balance.
How this is calculated
Each month: balance += balance × r/12; pay every minimum; extra = budget − minimums → the target debt. Payment needed = the smallest budget that clears everything within the months you set
- Avalanche
- Target = highest interest rate (ties: smaller balance)
- Snowball
- Target = smallest balance (ties: higher rate)
- Roll-over
- When a debt is cleared its minimum stays in the budget and goes to the next target
- Payment needed
- Found by trying budgets (a binary search over whole amounts); for one card it equals the loan formula P × r ÷ (1 − (1 + r)⁻ⁿ), rounded up
Both methods pay every minimum and put all extra money on one debt at a time. Avalanche targets the highest interest rate, which is mathematically cheapest. Snowball targets the smallest balance, so you see debts disappear sooner. Because the total monthly payment stays fixed, each cleared debt frees its minimum to speed up the next.
Assumptions & sources
- Fixed rates and a fixed total monthly payment; no new charges or fees.
- Interest accrues monthly at the annual rate ÷ 12 before payments.
- Minimum payments stay at the amount entered (real credit-card minimums fall as the balance falls, which makes 'minimums only' even slower).
- 1Credit card — Most Important Terms and Conditions (finance charges, minimum amount due) — Reserve Bank of India — Master Direction on Credit Card and Debit Card
- 2Debt payoff strategies (snowball and avalanche) — Consumer Financial Protection Bureau
Calculator ID FIN-DEBT-PAYOFF-001 · version 1.1.0
Common questions
Snowball or avalanche — which is better?
Avalanche saves the most interest. Snowball can work better if quick wins keep you going. When your highest-rate debt is also your smallest, both are the same.
Should I pay only the minimum on my credit card?
No — card interest in India is often 36–45 % a year, and paying only the minimum can keep you in debt for years. Pay it off first with the avalanche method.
How much do I need to pay to be debt-free by a date?
Choose Calculate: Payment needed and set the number of months. The result is the smallest monthly payment that clears every debt by then, with the extra going to one debt at a time by your chosen method.
What if I can't cover all the minimums?
Talk to your lenders before missing payments — restructuring or a lower-rate consolidation loan may help. Missed payments add fees and hurt your credit score.