i What this calculator does
Clearing expensive debt is the one return you can be certain of. A credit card at 20% costs you 20% with certainty, while no market strategy promises anything.
This compares the two common approaches on your own numbers: avalanche pays the highest rate first and saves the most interest, snowball pays the smallest balance first and produces a win sooner. It also shows the date the money becomes free for investing.
This calculator is for educational purposes only. Results are estimates and may vary depending on market conditions, spreads, commissions, platform settings, and exchange rates. It should not be considered financial advice.
Frequently asked questions
Which method is better?
Avalanche always costs less in interest, because it attacks the most expensive debt first. Snowball usually finishes one debt sooner, which some people find easier to sustain. The gap is often small, and the method you actually stick to beats the one that is theoretically optimal.
Should I clear debt before I start trading?
For expensive debt, the arithmetic is one-sided. A credit card at 22% costs 22% with certainty. Every regulated CFD broker in South Africa is required to disclose that most retail accounts lose money. Paying the debt is the higher expected return and the only certain one.
What about a home loan?
A bond at prime, currently 10.75%, sits in a different category from a card at 22%. Many people run a bond alongside investing, and the bond-versus-invest comparison is genuinely close. Cards and personal loans are not close.
Does the National Credit Act cap rates?
The NCA sets maximum rates by credit type, linked to the repo rate. With the repo at 7.25% those caps moved up in September 2026. A lender charging above the cap for its credit type is in breach, and the NCR handles complaints.
Should I keep a small emergency fund while paying off debt?
Most guidance says yes, usually one month of expenses. Without any buffer, the first unexpected expense goes back onto the card you are trying to clear, which undoes the progress and is demoralising.
What happens after the debt is gone?
The monthly amount you were paying becomes available. Redirecting it straight into a tax-free savings account or an index fund, before lifestyle absorbs it, is what turns a debt payoff into long-term capital.
Embed this calculator
Free to use on your own site. Copy the code below and paste it where you want the calculator to appear.
<iframe src="https://www.tradeanswers.co.za/embed/debt-payoff-calculator.html"
width="100%" height="750" style="border:0;max-width:520px"
title="Risk Per Trade Calculator - TradeAnswers" loading="lazy"></iframe>Calculator by TradeAnswers. More at the widget library.
