i What this calculator does
Quick answer: Clearing expensive debt is the one return you can be certain of. With the default inputs (debt 1 balance 45 000, debt 1 rate 22), it returns avalanche: debt free in of 14 months.
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.
How to use the Debt Payoff Calculator
You are not starting from empty fields. Alter one and the result updates against everything else held constant.
- 1. Debt 1 Balance (R)
- 2. Debt 1 Rate (%)
- 3. Debt 2 Balance (R)
- 4. Debt 2 Rate (%)
- 5. Debt 3 Balance (R)
- 6. Debt 3 Rate (%)
The result panel reports:
- Avalanche: Debt Free In Interest paid
- Snowball: Debt Free In Interest paid
Alongside the headline figures, the calculator reports total debt, monthly payment, highest rate, months difference. Those are the numbers that usually explain why the headline result came out where it did.
The arithmetic is laid out below the result, in the order it was performed.
See also: Bond vs Invest Calculator.
Common results
What the calculator returns as the debt 1 balance changes, with every other input at its default (debt 1 rate 22, debt 2 balance 18 000, debt 2 rate 15, debt 3 balance 7 000, debt 3 rate 27, total monthly payment 6 000).
| Debt 1 Balance | Avalanche: Debt Free In | Snowball: Debt Free In | Avalanche Saves |
|---|---|---|---|
| R15 000 | 8 months | 8 months | R0.00 |
| R25 000 | 9 months | 10 months | R477.63 |
| R50 000 | 15 months | 15 months | R1 020.39 |
| R100 000 | 26 months | 27 months | R2 369.32 |
| R200 000 | 63 months | 64 months | R7 287.58 |
| R400 000 | 600 months | 600 months | R726 307 525.15 |
Figures used in this calculator
The South African constants this calculator relies on, with the page that holds the current value and the date it was last verified.
- Prime lending rate: 10.75% from 23 September 2026. Source: Prime Lending Rate History (verified 27 September 2026).
- Repo rate: 7.25% from 23 September 2026. Source: SARB Repo Rate History (verified 27 September 2026).
- Transfer duty: Zero to R1,210,000, then banded rates. Source: Transfer Duty and Property Taxes (verified 29 September 2026).
- Primary residence CGT exclusion: R3 million. Source: Capital Gains Tax Rates and Exclusions (verified 15 October 2026).
How the calculation works
The calculator takes seven inputs: Debt 1 Balance, Debt 1 Rate, Debt 2 Balance, Debt 2 Rate, Debt 3 Balance, Debt 3 Rate and Total Monthly Payment. Total Monthly Payment: Everything you can put toward debt each month. The avalanche order is Highest rate first, then the next. The snowball order is Smallest balance first, then the next. The avalanche result is 14 months, R8 142.05 interest. The snowball result is 14 months, R9 050.04 interest. The breakdown also lists total debt, number of debts, avalanche months and avalanche interest.
A worked example in rand
With the default inputs (debt 1 balance R45 000, debt 1 rate 22%, debt 2 balance R18 000, debt 2 rate 15%, debt 3 balance R7 000 and debt 3 rate 27%), the calculator returns a avalanche: debt free in of 14 months, interest paid r8 142.05. It also reports snowball: debt free in 14 months and avalanche saves R907.99. Double the debt 1 balance to 90 000 and the avalanche: debt free in moves from 14 months to 24 months, the snowball: debt free in moves from 14 months to 24 months and the avalanche saves moves from R907.99 to R2 056.69.
How to read the result
With these inputs the calculator's own verdict reads: "Your highest rate is 27.0%. Clearing that is a certain return no market strategy can promise." The verdict changes as the inputs cross the thresholds the calculator uses, and it is the fastest way to see which side of them you are on. Compare loans on the total paid over the term, not the monthly instalment; a longer term lowers the instalment and raises the total cost, and the prime rate the calculators default to changes with every SARB decision.
The South African angle
Three things change the picture for a South African trader using the debt payoff calculator. Transfer duty on property is zero below R1.21 million and rises in bands above it, and it is paid by the buyer on top of the price, together with conveyancing and bond registration fees that the transfer costs calculator itemises. The prime lending rate is 10.75% after the September 2026 MPC meeting, and most South African home and vehicle loans are priced as prime plus or minus a margin, so every repo decision moves the instalment within a month. The National Credit Act caps the interest a lender may charge on personal loans, currently at the repo rate plus 21% for unsecured credit, which is the ceiling the personal loan calculator should be read against. The figures behind these points, and the ones the debt payoff calculator itself uses, are on the prime lending rate history.
Spotted an outdated figure? If a rate, limit or formula in this calculator no longer matches its source, email us the page and the source. A material correction is dated on the Updates Log.
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.
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.
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