Debt Repayment Calculator
Create a customized debt payoff plan. Calculate monthly payments, interest savings, and fastest strategies to become debt-free.
Debt Details
Total Debt Amount
₹5,00,000
₹
Enter total outstanding debt (₹10,000 to ₹50 lakhs)
Annual Interest Rate
12%
%
Annual interest rate on debt (1% to 36%)
Monthly Payment Amount
₹15,000
₹
Monthly payment you can afford (₹1,000 to ₹1,00,000)
Additional Monthly Payment
₹5,000
₹
Extra payment to accelerate payoff (optional)
Repayment Strategy
Debt Avalanche
Choose your debt repayment strategy
Debt Type
Credit Card
Select your debt type for typical rates
Payoff Time
3.5 years
Save ₹1,24,580
Total Debt
₹5,00,000
Total Interest
₹1,24,580
Total Repayment
₹6,24,580
42
Months to Payoff
₹15,000
Monthly Payment
24.9%
Interest Cost
Payoff Progress
Year 1
35% paid - ₹1,75,000 remaining
Year 2
70% paid - ₹1,50,000 remaining
Year 3
95% paid - ₹25,000 remaining
Monthly Breakdown (First Year)
| Month | Balance | Payment | Interest | Principal |
|---|
Smart Strategy
With Debt Avalanche, you'll save ₹1,24,580 in interest. Consider increasing monthly payment to ₹20,000 to pay off 2 years earlier.
Debt Repayment Strategies
Choosing the right debt repayment strategy can save thousands in interest and help you become debt-free faster. Our calculator compares different approaches.
Popular Debt Repayment Methods
Debt Avalanche
Pay minimums on all debts, put extra toward highest interest rate debt first.
Best For: Minimizing total interest paid
Save: Most interest, fastest mathematically
Debt Snowball
Pay minimums on all debts, put extra toward smallest balance first.
Best For: Psychological motivation
Save: Quick wins build momentum
Debt Consolidation
Combine multiple debts into single loan with lower interest rate.
Best For: Simplifying payments
Save: Lower rate, single payment
Balance Transfer
Transfer high-interest credit card debt to 0% APR card.
Best For: Credit card debt
Save: Interest-free period (12-18 months)
Tips to Accelerate Debt Payoff
- Pay More Than Minimum: Even ₹1,000 extra monthly cuts years off payoff time
- Use Windfalls Wisely: Apply bonuses, tax refunds to debt principal
- Reduce Expenses: Cut discretionary spending by 20%, redirect to debt
- Increase Income: Side hustles can add ₹10,000-50,000 monthly for debt payoff
- Negotiate Rates: Call creditors to request lower interest rates
- Stop New Debt: Freeze credit cards during payoff period
- Track Progress: Monthly check-ins keep you motivated
Debt Payoff Examples
| Debt Amount | Interest Rate | Monthly Payment | Payoff Time | Total Interest | Strategy |
|---|---|---|---|---|---|
| ₹3,00,000 | 18% (Credit Card) | ₹10,000 | 3.2 years | ₹1,08,400 | Avalanche |
| ₹3,00,000 | 18% (Credit Card) | ₹15,000 | 2.0 years | ₹64,800 | Avalanche |
| ₹5,00,000 | 12% (Personal Loan) | ₹20,000 | 2.5 years | ₹1,00,000 | Snowball |
| ₹10,00,000 | 8.5% (Home Loan) | ₹25,000 | 4.5 years | ₹3,50,000 | Extra Payments |
Note: Calculator provides estimates. Actual payoff time may vary based on payment dates, compounding methods, and creditor policies. Always verify with your lender. Consider professional financial advice for large debt amounts.