Financial Calculators
Debt Avalanche vs Snowball Calculator
Several loans, one extra payment. Where it goes decides how much interest you pay.
Avalanche saves, versus snowball
₹27,811
debt-free in 2 years 2 months either way, give or take
- Total debt
- ₹9,50,000
- Avalanche: interest paid
- ₹1,78,078
- Avalanche: debt-free in
- 2 years 2 months
- Snowball: interest paid
- ₹2,05,889
- Snowball: debt-free in
- 2 years 3 months
Avalanche sends the extra payment to the highest-rate loan first; snowball to the smallest balance first. Avalanche always costs less in interest. Snowball closes a loan sooner, which keeps some people going. When a loan closes, its EMI joins the extra payment on the next one in both methods.
These figures are for illustrative purposes only and are not investment advice. Please consult your investment adviser for investment related advice.
Two ways to order the attack
With more than one loan and some spare cash each month, the question is which loan gets the extra. Avalanche sends it to the highest interest rate first, which is mathematically cheapest. Snowball sends it to the smallest balance first, which clears a loan sooner and gives a visible win. Both roll each closed loan's EMI into the next target.
The calculator simulates both orders month by month across up to three loans and shows the interest and time under each. The difference is the price of the psychological boost; sometimes it is small enough to be worth paying.
Exact simulation, both orders
Each month: pay minimums on all loans; send the extra to the target loan\nAvalanche target: highest rate outstanding\nSnowball target: smallest balance outstanding\nWhen a loan closes, its EMI joins the extraWorked example: a Rs 3,00,000 credit card balance at 36%, a Rs 1,50,000 personal loan at 14% and a Rs 5,00,000 car loan at 9%, with Rs 10,000 extra a month: avalanche clears everything in 26 months for Rs 1,78,078 of interest; snowball takes 27 months and Rs 2,05,889. Avalanche saves Rs 27,811.
Frequently asked questions
Which method should I use?
Avalanche if you will stick to it. Snowball if you have quit debt plans before; the early win keeps people going, and the extra interest is usually modest. What matters most is the extra payment, not the order.
Should I include my home loan?
Only if it has the highest rate, which it rarely does. Home loans are usually the cheapest debt and the last to prepay. This calculator suits cards, personal, car and consumer loans.
What if a minimum payment does not cover interest?
The calculator flags it. That loan is growing, not shrinking, and needs a higher minimum before any strategy works; a credit card at minimum-due is the usual case.
Is a balance transfer or consolidation better?
Sometimes: moving a 36% card balance to a 14% personal loan is itself an avalanche move. The Balance Transfer calculator prices a single switch.
Get out of debt in an order.
We help clients list every loan, choose an order and free the cash flow that then becomes a SIP.