Reviewed by Artha Research·Last updated 8 April 2026
Debt Payoff Planner
Plan which debt to clear first and see how extra monthly payments can accelerate becoming debt-free.
Inputs
Start with two debts and an extra monthly payoff amount.
Debt-free in
22 mo
Attack Credit card first
The debt-avalanche method routes every extra rupee at the most expensive balance first, minimising interest drag.
Keep minimum payments on every debt, then push every extra rupee at the first item in the payoff order.
Total balance
₹6.3L
Months to debt-free
22 mo
Baseline timeline
40 mo
If you make only the stated minimums.
Interest saved
₹1.2L
Pay first
Credit card
Breakdown
- 1. Credit card₹1.8L28.6%
- 2. Personal loan₹4.5L71.4%
You have at least one debt above 24% APR
These should be cleared before any new investing or housing decisions are made.
Your extra payment cuts the timeline meaningfully
The acceleration is worth more than the cash you redirect, because compounding interest works against you.
Months saved
18 mo
Next best actions
The result hints at what to look at next. Each link carries your current numbers so you never re-enter them.
At a glance
- What it does
- Simulates the debt-avalanche (highest interest first) or debt-snowball (smallest balance first) payoff strategy across multiple loans.
- Avalanche vs snowball
- Avalanche saves the most interest mathematically; snowball delivers quicker emotional wins. For pure cost minimization, choose avalanche.
- Typical output
- ₹1.8L credit card (36%) + ₹4.5L personal loan (15%) with ₹12k extra/month becomes debt-free in ~35 months, saving ~₹65k in interest.
- Best used for
- Anyone juggling multiple high-interest debts. Clearing these is the highest-return decision in personal finance.
How It Works
This is the drill-down layer. The flagship flow leads with a recommendation, and this page lets you inspect the underlying model.
- The planner prioritises the highest-interest debt first in the core recommendation.
- Debt-free timeline depends on minimum payments plus extra monthly prepayment.
- Interest saved is estimated against a baseline of making only minimum payments.
Assumptions
The recommendation stays blunt, but the assumptions remain visible.
- Debt rates and minimum payments are assumed constant.
- The base plan uses the debt-avalanche method to minimise interest cost.
FAQ
The follow-up questions people usually ask after the main recommendation is already clear.
Should I use snowball or avalanche?
Avalanche is better financially because it cuts the most expensive debt first, though snowball can help with behaviour if motivation is the main problem.
Should I invest before paying high-interest debt?
Usually no, especially when the debt rate is meaningfully above the return you can confidently expect after tax.
Sources & references
Every formula and assumption above is grounded in these authoritative sources.
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