Debt Repayment Calculator – Plan Your Debt-Free Date

Add your credit cards and loans with their balances, interest rates and minimum payments, choose the avalanche or snowball strategy, and see how long it will take to clear them and how much interest you will pay.

Currency detected:Rupee (INR)

Your Debts

Balance

APR %

Min. Payment

Balance

APR %

Min. Payment

Extra Monthly Payment: ₹200

02,000

Repayment Strategy

Your Debt-Free Plan

Debt-Free In

1y 10m

(22 months)

Total Debt₹8,000

Total Interest₹1,496

Total Paid₹9,496

Monthly Payment₹440

Payoff Milestones

Month 12

Credit Card 2 paid off

Month 22

Credit Card 1 paid off

Avalanche Method: Paying off debts with the highest interest rates first saves you the most money in interest charges.

Why you need a debt repayment plan

Juggling several credit cards and loans makes it hard to see when – or whether – you will be debt-free. Unsecured debt in India is expensive: credit card interest is often 3% or more per month on unpaid balances, and personal loans charge well above home-loan rates. Paying only the minimum amount due on a card keeps you in debt for years, because interest is charged on the full outstanding balance and you lose the interest-free period on new purchases.

A clear plan – a fixed monthly budget for debt, applied in a deliberate order – shortens that time dramatically. This calculator compares the two most popular ordering strategies.

The debt avalanche method

List your debts from highest to lowest interest rate.
Pay the minimum on every debt.
Put all extra money towards the highest-rate debt.
When it is paid off, add its payment to the next-highest-rate debt, and repeat.

Best for: minimising total interest. It is mathematically optimal.

The debt snowball method

List your debts from smallest to largest balance.
Pay the minimum on every debt.
Put all extra money towards the smallest balance.
When it is paid off, roll its payment into the next-smallest, and repeat.

Best for: motivation. Closing accounts early gives visible progress, at the cost of some extra interest.

How does the calculator work?

Your total monthly budget = sum of all minimum payments + extra payment. Each month, the calculator:

Adds interest to each balance: balance × annual rate ÷ 12.
Pays the minimum payment on every debt (or the remaining balance, if smaller).
Applies whatever is left of the budget to the target debt in strategy order, rolling any surplus onto the next debt.
Removes debts that reach zero; their minimum payments now go to the remaining debts.

Because the total budget stays fixed, every debt you clear frees up money for the next one – the “roll-over” effect that makes both strategies work.

Worked example

Debts:

Credit card A: ₹60,000 at 42% p.a., paying ₹3,000 a month
Credit card B: ₹25,000 at 36% p.a., paying ₹1,250 a month
Personal loan: ₹1,50,000 at 14% p.a., EMI ₹5,000 a month
Extra payment: ₹5,000 a month (total budget ₹14,250)

	Avalanche	Snowball
Order of payoff	Card A (month 9), Card B (month 12), loan (month 20)	Card B (month 5), Card A (month 12), loan (month 20)
Debt-free in	20 months	20 months
Total interest	₹41,278	₹42,374

Avalanche saves about ₹1,096 in interest; snowball clears the first account four months sooner. The bigger lesson is the extra ₹5,000: paying only the ₹9,250 of minimums, the same debts take 36 months and cost about ₹94,061 in interest – more than double.

Tips for getting out of debt faster

Stop adding new debt: pause credit card spending you cannot repay in full each month.
Pay more than the minimum amount due: treat the minimum as a floor, not a target.
Use windfalls: put bonuses, tax refunds and incentives towards the target debt.
Automate payments: set up auto-debit so you never miss a due date and incur late fees.
Keep a small emergency fund: so an unexpected bill does not push you back onto your credit card.
Protect your credit score: timely payments help; settling a card for less than you owe can hurt your score.

When to consider debt consolidation

If you have several high-interest debts and a good repayment record, replacing them with one lower-rate loan can cut interest and simplify payments. Options in India include a personal loan, a credit card balance transfer, a top-up on an existing home loan, or a loan against FDs, gold or securities. Compare the new rate after processing fees and any foreclosure charges on existing loans, and avoid running up the old cards again after consolidating.

Debt Repayment Calculator FAQs

What is the debt avalanche method?

You pay the minimum on every debt and put all extra money towards the debt with the highest interest rate. When it is cleared, its payment rolls over to the next-highest rate. This minimises total interest.

What is the debt snowball method?

You pay the minimum on every debt and put all extra money towards the debt with the smallest balance, regardless of interest rate. Clearing small debts quickly gives early wins that help many people stay motivated.

Which debt repayment method is better?

Avalanche always costs the same or less in interest; snowball gives faster early payoffs. If the gap in interest is small, pick the method you are more likely to stick with. Try both in the calculator with your own numbers.

How does the calculator work out my debt-free date?

It simulates each month: interest of (annual rate ÷ 12) is added to every balance, the minimum payment is made on each debt, and the remaining money (your extra payment plus minimums freed up from cleared debts) goes to the target debt and then the next one. It counts the months until every balance is zero.

Can I use it for credit card debt?

Yes. Add each card with its outstanding balance, annual interest rate and the monthly amount you will pay. Card issuers usually quote a monthly rate – multiply it by 12 to get the annual rate to enter.

What if my payments don’t cover the interest?

If your monthly payments are less than the interest being added, the balance never falls and the calculator will warn you. Increase the payment or look at a lower-rate option such as a personal loan or balance transfer to consolidate.

Important Disclaimer

For Educational and Informational Purposes Only: This calculator is provided solely for educational and informational purposes. It is designed to help you understand potential investment outcomes and should not be considered as financial, investment, tax, or legal advice.

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