Debt Payoff Calculator

List your debts to see when you’ll be debt-free, and whether paying the highest rate first (avalanche) or the smallest balance first (snowball) saves you more.

Balance

Rate

Minimum

Balance

Rate

Minimum

Balance

Rate

Minimum

Extra each month

On top of the minimum repayments

Pay off first

Debt-free in

2 years 7 months

Paying $780 a month: your minimums plus $200 extra

Total interest: $2,747
Minimums only: 4 years 3 months

What you owe now$21,000
Interest$2,747

What this means

Avalanche pays the highest interest rate first, which costs the least in interest. The snowball method would cost $391 more.

Each time a debt is paid off, its payment moves to the next one, so your payments snowball while the total you pay each month stays the same.

Next step

Compare the plans

	Avalanche	Snowball	Minimums only
Debt-free in	2 years 7 months	2 years 7 months	4 years 3 months
Total interest	$2,747	$3,138	$4,978
Total paid	$23,747	$24,138	$25,978

Avalanche saves $391 in interest against snowball.

Payoff order

1.Credit cardcleared in 1 year 5 months
2.Personal loancleared in 1 year 10 months
3.Car loancleared in 2 years 7 months

Assumptions in this estimate

Each month, interest is added to every debt and each gets its minimum. Everything else goes to the debt first in line, and when a debt is cleared, its minimum moves to the next one.
Avalanche pays the highest interest rate first, which saves the most interest. Snowball pays the smallest balance first, so you clear whole debts sooner.
Interest is added monthly at one-twelfth of the yearly rate. Assumes fixed rates, no new borrowing, and no fees.
Minimums are treated as fixed amounts. Credit card minimums usually fall as the balance falls.

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How the calculator works

Your debts: enter each one’s balance, interest rate and minimum repayment. Add or remove debts as you need.
Your budget: each month you pay all the minimums plus your extra amount. When a debt is cleared, its minimum goes to the next one.
The order: avalanche pays the highest rate first, and snowball pays the smallest balance first.

Example

A credit card ($5,000 at 20.99%), a car loan ($12,000 at 7.48%) and a personal loan ($4,000 at 8.99%), with $580 of minimum repayments and $200 extra a month:

Plan	Debt-free in	Total interest
Avalanche	2 years 7 months	$2,747
Snowball	2 years 7 months	$3,138
Minimums only	4 years 3 months	$4,978

The rates are typical for each kind of borrowing in Australia.

Last updated October 14, 2026

Frequently asked questions

What is the debt avalanche method?

Pay the minimum on every debt, and put everything extra on the one with the highest interest rate. When it’s cleared, move on to the next highest. It saves the most interest.

What is the debt snowball method?

Pay the minimum on every debt, and put everything extra on the smallest balance. Clearing whole debts quickly can keep you motivated, but it usually costs a little more interest.

Which is better, snowball or avalanche?

Avalanche saves more money, and snowball gives quicker wins. In the example below, avalanche saves $391 in interest. The best plan is the one you’ll stick to.

How much extra should I pay each month?

Whatever you can keep up. In the example below, adding $200 a month to the minimums clears the debts in 2 years 7 months instead of 4 years 3 months, and saves $2,231 in interest.