FunanceBoth strategies, side by side
and computed on the same debts and the same monthly amount, so the comparison is like for like rather than theoretical.
Debt strategy for Australian householdsPay them off in the order that costs least.
Two households with identical debts and identical budgets can finish years apart, purely on payoff order. Funance shows both strategies side by side with your numbers, then gives you a date.
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Debt-free, highest rate first
March 2030
3 years 4 months at $960 a month, with $6,797 of interest along the way.
- (highest rate first)
- 3 years 4 months
- Avalanche, total interest
- $6,797
- (smallest balance first)
- 3 years 4 months
- Snowball, total interest
- $6,976
- Avalanche saves
- $179
- Without the extra $200
- 4 years 7 months
- The extra $200 saves
- $3,928 interest
Avalanche clears Credit card first, in month 24. Snowball clears Store card first, in month 15: an earlier first win, for $179 more interest overall.
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pays the highest interest rate first and costs the least. pays the smallest balance first and gets you a win sooner. Which one is right depends on whether your problem is arithmetic or momentum, and most advice picks a side without showing you the difference.
The calculator above runs both on your debts and shows the gap in dollars and months. Sometimes it is large enough to settle the argument. Sometimes it is small enough that the one you will stick to matters more.
On the example debts, the order is worth $179. The is worth $3,928 and 15 months. That is the usual pattern: how much goes on debt each month moves the date far more than which debt it goes on first.
Either way you get a debt-free date instead of a feeling.
| Plan | Debt-free in, and interest paid |
|---|---|
| Avalanche, highest rate first | 3 years 4 months, $6,797 |
| Snowball, smallest balance first | 3 years 4 months, $6,976 |
| First debt cleared | Avalanche month 24, snowball month 15 |
| Same debts, without the extra $200 | 4 years 7 months, $10,725 |
| What the extra $200 a month is worth | $3,928 and 15 months |
Illustrative, and the calculator's starting values: a $9,000 credit card at 21.9% ($270 ), a $4,000 store card at 18.9% ($120), an $18,000 car loan at 8.4% ($370), plus $200 a month extra. Same model as the calculator.
See it with your own numbers
Every account starts with 14 days of Pro, no card. Keep it for $79 a year, or carry on with the free plan.
How it works
What it models
A real debt-free date
Not a vague horizon. A month and a year, recalculated whenever your balances or your available repayment change.
Extra repayment forecasting
See what an extra $50, $100 or $500 a month does to the date and the total interest before you commit to it.
Mortgage offset alongside consumer debt
Household debt is rarely just credit cards. modelling sits next to the consumer debts so the whole picture is in one place.
What you need to enter
- Each debt's balance
- Its interest rate
- The
- What you can put towards debt each month
Questions
Before you start
Which is better, avalanche or snowball?
always costs less interest because it targets the highest rate first. clears individual debts sooner, which some people find easier to sustain. Funance shows both on your numbers so you can see whether the difference is large enough to matter for you.
What happens when one debt is paid off?
Its repayment onto the next debt in the order, so the total you pay each month stays the same and each debt clears faster than the one before. The calculator assumes you do this under both methods.
Does it handle HECS-HELP?
is handled separately from consumer debt, because repayments are income-driven through the tax system rather than a balance you can simply pay down faster on the same terms.
Is the debt calculator free?
Yes. The calculator on this page needs no account, and the Debts tab in Funance is included on the free plan, with no card required.
Does the calculator keep my numbers?
No. Nothing you type into it leaves your browser. To keep your debts and see the date move as you pay them down, add them to the Debts tab in Funance.
Related
Related tools and guides
Mortgage scenario calculator
A repayment calculator tells you what you owe today. A scenario engine tells you what happens if the RBA moves, if you put an extra $200 a month in, or if you refinance. Those are the questions that actually change decisions.
Mortgage rate rise calculator →Credit card annual fee calculator
Premium cards are sold on the perks and paid for on the fee. The honest test is whether the value you personally extract exceeds what you hand over each year, and most people have never run it.
Credit card annual fee calculator →Budget planner Australia
Put in your pay and your bills. See what is really left in each of the next twelve months, including the ones where rego, insurance and the water bill all land at once.
Budget planner for Australians →Know where your money goes.
Know where you're going.
Every account starts with 14 days of Pro, no card needed. Keep it for $79 a year, or carry on with the free plan: Overview, Budget and Debts, for good. No bank login either way.
14 days of Pro free, no card · then the free plan, or $79 a year · no bank login