Debt Payoff Calculator
Compare avalanche vs snowball — see exactly how long your debt will take to clear and how much interest you can save.
Choose your strategy
Your debts
Total monthly payment: $950
Debt-free in (Avalanche)
2y 11m
Total interest paid: $5,097
Avalanche saves you
$474
vs Snowball and 1 month sooner
Payoff order
- 1Credit card19.99%
- 2Personal loan12%
- 3Car loan8.5%
Total debt
$28,000
current balance
Interest cost
$5,097
total if paid off
Payoff milestone schedule
Key checkpoints on your path to debt freedom.
| Month | Balance remaining | Interest paid to date | Paid off |
|---|---|---|---|
| Month 12 | $19,555 | $2,955 | — |
| Month 18 | $14,875 | $3,975 | — |
| Month 24 | $9,856 | $4,656 | — |
| Month 35 | PAID OFF! | $5,097 | Credit card, Car loan, Personal loan |
This calculator assumes fixed interest rates and consistent monthly payments. Actual interest may vary based on your lender's compounding frequency and any rate changes. Does not account for HECS indexation (which follows CPI, not a fixed rate). General information only — not financial advice. Consult a licensed financial adviser or financial counsellor for personalised debt management advice. Free financial counselling is available at National Debt Helpline (1800 007 007).
Frequently asked questions
What is the avalanche method and why is it better mathematically?
The avalanche method directs extra payments to the debt with the highest interest rate first, while paying minimums on everything else. When the highest-rate debt is cleared, you roll that payment to the next highest. Mathematically, this minimises total interest paid because you eliminate the most expensive debt fastest. For a typical Australian with a credit card at 19.99% and a car loan at 8.5%, the interest savings vs snowball can be thousands of dollars.
What is the snowball method and when should I use it?
The snowball method pays off the smallest balance first, regardless of interest rate. You get quick wins — clearing a debt entirely feels motivating and removes one payment from your mental load. Research by Harvard Business Review suggests that for people who've struggled to stay on track with debt repayment, the psychological wins of the snowball can lead to better long-term outcomes despite the extra interest cost. If you need motivation to keep going, snowball is the right choice.
Should I include HECS/HELP in my debt payoff plan?
HECS/HELP is indexed to CPI (inflation) rather than a fixed interest rate, and repayments are automatically deducted from your salary once you earn above the threshold. This makes it very different from consumer debt. Most financial advisers suggest: clear high-interest consumer debt (credit cards, personal loans) first, then consider voluntary HECS repayment only if you have extra funds and HECS indexation is running above savings account rates. In high-inflation years (4–7% CPI), HECS can cost more than a high-interest savings account earns.
What's the fastest way to get out of debt?
The fastest strategy is avalanche + maximum extra payments. Every extra dollar above your minimums dramatically reduces payoff time because: (1) you stop accruing interest on that dollar, and (2) it rolls forward to the next debt (the snowball effect). Concrete tactics: balance transfer credit cards (0% promotional rate), debt consolidation at a lower rate, selling unused assets, and temporarily cutting discretionary spending. Refinancing high-rate personal loans to a lower-rate personal loan through a credit union can also help.