Debt Payoff Calculator Australia
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Plan your way out of debt. Add credit cards, personal loans, car loans or buy-now-pay-later balances, then choose between the snowball method (smallest balance first) or the avalanche method (highest interest rate first). The calculator shows months to debt-free, total interest paid and how much you save by adding extra payments.
Your debts
Above your minimum payments.
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Your debt-free plan
Time to debt-free
—
— months total
Total interest paid
—
across all debts
Interest saved
—
vs minimum payments only
Payoff order
Show monthly payoff schedule (every 3 months + payoff milestones)
| Month | Interest charged | Total balance |
|---|
How to use this calculator
- Add each of your debts: credit cards, store cards, personal loans, car loans, buy-now-pay-later balances and any other consumer debt.
- Enter the current balance, the annual interest rate, and the minimum monthly repayment for each.
- Set how much extra you can put towards debt each month.
- Choose the avalanche method to minimise total interest, or the snowball method for faster psychological wins.
- The “Interest saved” figure shows the benefit of your extra payments versus paying the minimums only.
Key assumptions
- Interest is compounded monthly using the annual rate divided by 12.
- Minimum payments are fixed (they don’t reduce as the balance falls — a conservative assumption that makes payoff slightly faster than reality on credit cards).
- Extra payments are applied to the priority debt — smallest balance for snowball, highest rate for avalanche.
- Once a debt is paid off, its minimum payment is freed up but does not increase the total payment pool — only the extra payment continues. To model the “debt avalanche/snowball” of rolling minimums forward, increase the “extra payment” field as debts are eliminated.
- No new charges are made to any debt during the payoff period.
- No fees, balance transfer offers or interest-free periods are modelled.
Frequently asked questions
Snowball vs avalanche — which is better?
The avalanche method (paying the highest interest rate first) always pays the least total interest mathematically. The snowball method (paying the smallest balance first) takes slightly longer and costs slightly more, but gives quick psychological wins which research shows helps many people stick with the plan. If you’re disciplined, choose avalanche; if you need motivation, choose snowball.
Should I pay off debt or save first?
For most Australians, paying off high-interest debt (credit cards typically 18–22%) almost always beats saving in a high-interest account (around 4–5%). It’s sensible to keep a small emergency buffer (perhaps $1,000–$2,000) before throwing everything at debt, so an unexpected bill doesn’t push you back into borrowing.
Should I consolidate my debts?
Debt consolidation can reduce your interest rate and simplify repayments, but only if you genuinely stop adding to the original cards or accounts. Speak to a financial counsellor or licensed broker — and if you’re struggling, the National Debt Helpline (1800 007 007) is free, independent and confidential.
Does this calculator include my home loan?
You can include it, but mortgages are usually treated separately because they’re long-term, secured debt at much lower rates. Use our mortgage calculator for home loans, and reserve this tool for higher-interest consumer debt where the snowball/avalanche strategy makes the biggest difference.
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This calculator provides general estimates only and is not financial advice. Please consult a licensed financial adviser before making any financial decisions.