How to use this calculator
- Enter each loan or card: amount left, yearly rate and the EMI or minimum due.
- Enter the extra money you can pay every month.
- Choose: highest interest first, or smallest loan first.
Frequently asked questions
Which loan should I close first?
The one with the highest interest rate — that saves the most money. Credit cards usually come first: at 42% a year they cost far more than a personal loan. In the example, closing the highest-interest loan first clears everything in 1 year 8 months with ₹56,555 of interest.
Should I close the smallest loan first?
You can — you see one loan closed sooner, which keeps some people going. But it costs more: in the example, ₹3,297 more interest than closing the highest-interest loan first.
What if I pay only the minimum?
It takes much longer and costs much more. Paying only the minimum on the example loans takes 3 years and ₹1,14,842 of interest.
Does a credit card minimum ever clear the card?
Only slowly. The minimum due is a small part of the bill, and interest on the rest can be 36–48% a year. If you can, pay the full bill every month.