When you owe on several loans at once, the order you clear them in changes both the total interest and how long it takes. This compares the two standard approaches over your actual debts.
The avalanche method directs every spare rupee at the highest interest rate first, which mathematically minimises total interest. The snowball method targets the smallest balance first, clearing individual debts sooner for motivational momentum. Both are simulated month by month against the same total payment so the comparison is like for like.
Avalanche always costs less in interest — sometimes only marginally, sometimes significantly. Snowball clears individual debts faster, which some people find easier to sustain. Run both here: if the interest difference is small, the method you will actually stick with is the better one.
High-interest debt such as credit cards or personal loans, typically well above what investments return after tax, should generally be cleared first — paying off a 36% credit card is a guaranteed 36% return. Low-rate secured debt like a home loan is a much closer call.
This calculator is for information only and is not investment, tax, or financial advice. Figures are estimates based on the assumptions you enter and are not a guarantee of future returns. Consult a SEBI-registered adviser or a qualified tax professional before acting.