List every loan and card you're paying off. We'll work out how long it takes at minimums alone, then show what changes if you throw extra money at it — and which order does it fastest.
Avalanche targets the highest-interest debt first with every spare rupee, which minimises total interest paid — the mathematically optimal order. Snowball targets the smallest balance first regardless of rate, which clears individual debts sooner and can be easier to stick with. As each debt is paid off, its minimum payment rolls into the next target automatically. This is a planning estimate — real loans may have prepayment charges, fixed tenures, or other terms not modelled here.
Avalanche pays off the highest-interest debt first, which minimises the total interest you pay — it's the mathematically optimal order. Snowball pays off the smallest balance first regardless of rate, which clears individual debts sooner and can be easier to stay motivated with.
As a rough guide, if a debt's interest rate is higher than what you'd realistically expect to earn investing, paying it off first usually wins — common for credit cards and personal loans. For lower-rate debt like some home loans, investing the difference can come out ahead, though it carries market risk debt payoff doesn't.
More than most people expect, because extra payments reduce principal early, which compounds — the earlier the extra payment, the bigger the effect. Use the calculator above with your real loan numbers to see the exact figure rather than a rule of thumb.
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