Debt Payoff Calculator
Add multiple debts (balance, rate, minimum) and a monthly extra payment. Get your debt-free date, total interest and a payoff schedule.
What this calculator does
Getting out of debt is one of those problems where the emotional weight is heavier than the actual math. This calculator tries to lighten the load by showing you exactly when you'll be free, based on real numbers — not guesses.
Add every debt you have: credit cards, personal loans, education loans, buy-now-pay-later balances, that ₹40,000 you owe your cousin. For each one, put in the current balance, the interest rate, and the minimum payment. Then add whatever extra you can put toward debt each month — even ₹2,000 makes a difference. The calculator shows you the debt-free date using both strategies: avalanche (attack the highest interest rate first, mathematically optimal) and snowball (attack the smallest balance first, psychologically satisfying).
Which one should you pick? Avalanche saves you more money. Snowball keeps you motivated by giving you fast wins. If your debts are similar in size, avalanche is clearly better. If you have one tiny debt among big ones, knock the tiny one out first for the emotional win, then switch to avalanche.
Monthly interest = balance × (rate/1200). Extra rolls to the priority debt.Variables explained
- Debt list
Each debt: current balance, annual interest rate, minimum monthly payment.
- Extra monthly payment
The amount beyond minimums you can throw at debt. Even ₹1,000 changes the math substantially.
- Strategy
Avalanche (highest rate first) or Snowball (smallest balance first).
Avalanche: tackle highest interest rate first (cheapest mathematically).
| Month | Paid | Interest | Remaining |
|---|---|---|---|
| 1 | ₹10,000 | ₹3,550 | ₹2,03,550 |
| 2 | ₹10,000 | ₹3,416 | ₹1,96,966 |
| 3 | ₹10,000 | ₹3,279 | ₹1,90,245 |
| 4 | ₹10,000 | ₹3,138 | ₹1,83,383 |
| 5 | ₹10,000 | ₹2,994 | ₹1,76,377 |
| 6 | ₹10,000 | ₹2,846 | ₹1,69,223 |
| 7 | ₹10,000 | ₹2,695 | ₹1,61,918 |
| 8 | ₹10,000 | ₹2,540 | ₹1,54,458 |
| 9 | ₹10,000 | ₹2,380 | ₹1,46,838 |
| 10 | ₹10,000 | ₹2,217 | ₹1,39,055 |
| 11 | ₹10,000 | ₹2,050 | ₹1,31,105 |
| 12 | ₹10,000 | ₹1,878 | ₹1,22,983 |
| 13 | ₹10,000 | ₹1,702 | ₹1,14,685 |
| 14 | ₹10,000 | ₹1,522 | ₹1,06,207 |
| 15 | ₹10,000 | ₹1,337 | ₹97,544 |
| 16 | ₹7,498 | ₹1,147 | ₹91,193 |
| 17 | ₹7,000 | ₹1,064 | ₹85,257 |
| 18 | ₹7,000 | ₹995 | ₹79,251 |
| 19 | ₹7,000 | ₹925 | ₹73,176 |
| 20 | ₹7,000 | ₹854 | ₹67,030 |
| 21 | ₹7,000 | ₹782 | ₹60,812 |
| 22 | ₹7,000 | ₹709 | ₹54,521 |
| 23 | ₹7,000 | ₹636 | ₹48,157 |
| 24 | ₹7,000 | ₹562 | ₹41,719 |
Worked example: ₹1.5 lakh credit card + ₹80,000 personal loan
Debt 1: ₹1.5L credit card at 42% APR, min payment ₹4,500/month.
Debt 2: ₹80K personal loan at 15% APR, min payment ₹3,000/month.
Extra ₹5,000/month available. With avalanche (attack CC first): debt-free in ~26 months, total interest ~₹52,000. With snowball (attack PL first): debt-free in ~29 months, total interest ~₹68,000.
Avalanche saves ~₹16,000 and 3 months in this scenario.
The interest number is the one that matters
When you calculate an EMI, most people fixate on the monthly payment. But look at the total interest paid over the loan tenure — that's the real cost of the debt. On a 25-year home loan, you often pay more in interest than the property cost.
Run the calculator with three tenures: the one the lender is offering, one 5 years shorter, and one 10 years shorter. The EMI goes up, but the total interest often drops by lakhs.
Prepayment is the other superpower. Any lumpsum you throw at the principal early in the loan cuts a disproportionate amount of interest. A single ₹1 lakh prepayment in year 2 of a 20-year home loan can save ₹3-4 lakh in interest and shave off 8-12 months.
Watch out for the two things lenders quietly assume: that you'll take the full tenure, and that you won't prepay. Break both assumptions and the math shifts massively in your favour.
Common mistakes
- ✗Paying only minimums on credit cards. That's the trap.
- ✗Investing in a SIP while carrying 42% credit card debt.
- ✗Not consolidating multiple credit card balances via a personal loan (if the personal loan rate is under 18%).
- ✗Adding new debt while paying old debt off.
Frequently asked questions
Should I use my emergency fund to clear credit card debt?+
Partially — keep ₹15-25K as a small buffer, use the rest to clear high-interest debt. Building back the emergency fund at 6% is cheaper than paying 42% on debt.
Does paying off debt improve my credit score?+
Yes — CIBIL improves as your credit utilisation drops. Fully paying off (not closing) old credit cards keeps your credit history length intact.
Balance transfer to another card — worth it?+
If the new card offers 0-3% for 6-12 months and you can realistically clear the debt in that window, yes. Otherwise the transfer fee (2-5%) often outweighs the benefit.
Reminder: this calculator is a learning tool, not personalised advice. For decisions involving your actual money, talk to a SEBI-registered adviser about your specific situation.