How this calculation works
Compare two ways to allocate a fixed monthly debt budget across several balances. Both pay the stated minimums first. Avalanche directs the remaining budget toward the highest rate; snowball targets the smallest balance. When a debt is cleared, its budget is available to the others, so the comparison maintains the same total monthly payment capacity throughout.
Worked example
This example uses illustrative inputs. Your current result is shown above.
Enter two debts: A | 600 | 0 | 100 and B | 300 | 0 | 100, with ₹100 extra monthly. Both strategies have a ₹300 monthly budget against ₹900 debt. At 0% interest, both clear all debt in three months and pay zero interest; this is a check that the strategies use equal cash budgets.
Assumptions and limits
- Each row is name, outstanding balance, annual percentage and fixed monthly minimum. No new borrowing, fees or changes in rates and minimums occur.
- The monthly budget stays fixed after individual debts close. The model compares repayment arithmetic, not the behavioural likelihood of maintaining either plan.
Questions people ask
Why does snowball sometimes finish a small balance first?
It orders targets by outstanding balance rather than rate. Avalanche prioritises the highest rate to reduce interest exposure under the stated fixed-payment assumptions.
Does the extra payment go to every debt?
No. All minimums are funded first, then the remaining common budget is concentrated by the selected priority. Leftover cash can continue to another debt in the same month.