Avalanche vs Snowball: Which Loan Should Get Your Extra Money?
Enter up to three loans and the extra amount you can pay each month. See, side by side, what happens if it goes to the highest-rate loan first or the smallest balance first.
Loan 1
Loan 2 (optional)
Loan 3 (optional)
Example values shown — replace them with your own loan details. Both options use the same extra money, and each finished loan's EMI keeps going to the next. Lowest interest and the quickest first win can be different loans — the choice is yours. Reducing-balance loans only. Estimates only, not financial advice.
The two methods in one minute
Highest rate first (often called the avalanche method): every extra rupee goes to the loan with the highest interest rate. It generally pays the least interest overall.
Smallest balance first (the snowball method): every extra rupee goes to the loan you owe the least on. You close a loan sooner, which many people find motivating.
How this calculator compares them
It runs all your loans month by month. In both options you pay every EMI, add the same extra amount, and when a loan ends its EMI keeps going towards the next one. The only difference is which loan receives the extra money first.
You see the debt-free month, total interest, interest saved against paying only your normal EMIs, and how soon your first loan closes. If both methods start with the same loan the results are identical, and we tell you.
Before you use the numbers
Results are estimates on reducing-balance loans, the most common kind from banks. Check prepayment or foreclosure charges in your agreement, keep an emergency reserve, and confirm figures with your lender. Neither method is right for everyone — the choice is yours.
Frequently asked questions
Which method saves more money?
Paying the highest-rate loan first usually pays the least interest. The calculator shows the exact difference for your loans, which is often small when the rates are close.
Why would I choose the snowball method?
Closing a loan early frees its EMI and gives a visible win. If that keeps you on track, it can be worth a little extra interest.
Why are both results the same?
When the loan with the highest rate is also the one with the smallest balance, both methods send the extra money to the same loan.
Does it include prepayment charges?
No. If your lender charges for part-payments, subtract that from the saving. The KadanMukti app lets you enter a charge on each loan and shows the net benefit.
Track every loan in one place
KadanMukti shows the true cost of all your loans, your debt-free date, and what an extra payment saves. Free to try, no signup.
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Estimates only, not financial advice. Rates are examples — actual rates vary by lender and profile, so verify with your lender. Calculator app, not a financial advisor.