Debt Payoff Calculator: Snowball vs Avalanche
Enter your debts and what extra you can pay. See when you'll be debt-free, the interest you'll pay and the best order to tackle them.
Leave a row at $0 if you don't need it. Mortgages are usually best left out.
Your payoff order
| Order | Debt | Paid off | Interest paid |
|---|
Total debt over time
Interest is charged monthly at the yearly rate ÷ 12. Each month every debt gets its minimum, and the extra amount goes to the target debt. When a debt is cleared, its minimum rolls on to the next one. Assumes no new spending and no fees.
Printed from ClearCalc (clearcalc.com.au/debt-payoff-calculator/). Estimates only, not financial advice.
Avalanche or snowball?
Both methods pay the minimum on every debt and put every spare dollar on one target debt. When that debt is gone, its repayment rolls on to the next one, so your payments snowball even though your budget stays the same.
- Avalanche targets the highest interest rate first. It always costs the least interest and is usually a little faster.
- Snowball targets the smallest balance first. It costs a bit more, but you clear a debt sooner, which many people find keeps them going.
With the example debts above (a credit card, a personal loan and a car loan) and $300 a month extra, the difference between the two is usually a few hundred dollars. The bigger win is paying extra at all: compare either method with the minimums-only figure.
Ways to speed it up
- Cut the interest rate. A 0% balance transfer or a cheaper personal loan to consolidate high-rate debts can save thousands, as long as you stop using the old cards. Check the revert rate and fees.
- Use windfalls. Tax refunds and bonuses paid straight onto the target debt make a big difference.
- Don't add new debt. Lower your card limit or close cards you've cleared.
- Get free help if you're struggling. The National Debt Helpline (1800 007 007) offers free, confidential financial counselling, and you can ask lenders for a hardship arrangement.
Frequently asked questions
Is the avalanche or snowball method better?
Avalanche (highest rate first) always costs the least interest. Snowball (smallest balance first) can be easier to stick with because you clear debts sooner. The best method is the one you'll keep going with.
Should I include my mortgage?
Usually not. Mortgage rates are much lower than credit cards and personal loans, so it makes sense to clear the expensive debts first. Extra mortgage repayments or an offset can come later.
What if I can only pay the minimums?
You'll still pay the debts off eventually, as long as each minimum is more than the monthly interest, but it can take many years and cost far more in interest. Even a small extra amount each month makes a big difference.
Official sources used for this calculator include: Moneysmart – Personal loans, Moneysmart – Credit cards, Moneysmart – Saving. See how we calculate.
Reviewed by the ClearCalc team. Last reviewed October 2026. This calculator gives an estimate for general information only. Check important figures with the relevant government agency or a licensed professional.