Debt payoff planner

See how several debts are repaid smallest balance first or highest interest rate first, from the same monthly budget.

Smallest balance first

28months

Highest interest rate first

28months

Total interest $2,917.89 and $2,691.16 respectively, a difference of $226.73. Both use the same $930 monthly budget.

Total interest, smallest balance first: $2,917.89$2,863.22 in today's dollars
Total interest, highest interest rate first: $2,691.16$2,641.52 in today's dollars
Total repaid, smallest balance first: $25,417.89$24,690.74 in today's dollars
Total repaid, highest interest rate first: $25,191.16$24,476.70 in today's dollars

Remaining balance by month

Both orders, from the same monthly budget

Smallest balance firstHighest interest rate first

When each debt is repaid

When each debt is repaid
Debt	Balance	Interest rate	Minimum repayment	Smallest balance first	Highest interest rate first
Personal loan	$2,500	9.00%	$100	Month 7	Month 17
Credit card	$6,000	20.00%	$180	Month 17	Month 15
Car loan	$14,000	8.00%	$350	Month 28	Month 28
Debt-free				Month 28	Month 28

Smallest balance first order: Personal loan, Credit card, Car loan. Highest interest rate first order: Credit card, Personal loan, Car loan.

Assumptions

InterestAnnual rate ÷ 12, charged monthly on the opening balance and rounded to the cent
RepaymentsAt the end of each month, from a fixed monthly budget of $930: the minimum on each debt with a balance, plus the extra amount
OrderFixed at the start from opening balances and rates. Equal balances go to the higher rate first, equal rates to the smaller balance, then the order entered
Cleared debtsTheir minimums stay in the budget and flow to the next debt in the order, in the same month
Today's dollarsEach month's repayment or interest ÷ (1 + inflation)^(month ÷ 12), summed, with inflation at 2.50% RG 167
Not modelledFees, rate changes, penalty rates and hardship arrangements. Fees, rate rises and penalty rates would increase interest and lengthen repayment
Minimum repaymentsHeld fixed. Lenders often lower them as balances fall, so with little or no extra amount the time to repay can be understated

About this estimate

This planner compares two ways of ordering the same monthly repayments across your debts. It shows what each order produces; it does not recommend either. Interest is worked out monthly at the annual rate ÷ 12; actual interest and repayment dates may differ because lenders use different daily-interest and repayment-timing conventions, and the difference can go either way. Fees, rate changes, penalty rates and hardship arrangements are not included; fees, rate rises and penalty rates would increase the interest paid and lengthen the time to repay. Minimum repayments are held fixed, while lenders often lower them as balances fall, so where little or nothing is paid above the minimums the time to repay can be longer than shown.

Amounts are in future dollars as they are paid. Where repayment runs two years or more, today's-dollar totals are shown alongside, using inflation of 2.5% per annum unless you change it. This calculator is for general information only and is not intended to be relied on for the purposes of making a decision about a financial product. Before making any financial decisions, consider obtaining advice from an Australian Financial Services licensee.