Debt Payoff Calculator New Zealand
Add up to 5 debts and calculate your payoff plan. Compare snowball vs avalanche strategies and see if consolidation saves you money. NZ credit rates and CCCFA guidance included.
Try a scenario
How to Use This Calculator
Tab "Payoff Plan"
Enter up to 5 debts — each with a name, balance, interest rate (% p.a.), and minimum monthly payment. Then enter how much extra you can pay each month on top of all minimums. The calculator shows your debt-free date, total interest, and a per-debt breakdown.
Tab "Snowball vs Avalanche"
Uses the same debt inputs to compare two repayment strategies head-to-head. Enter your extra monthly payment and the calculator simulates both strategies month-by-month, showing total interest paid, time to debt-free, and the dollar savings from choosing avalanche.
Tab "Consolidation"
Enter your consolidation loan rate and term. The calculator compares your current separate repayments against a single consolidation loan — showing monthly payment difference, total interest difference, and a clear verdict.
Share your result
Click Share to copy a URL encoding your current tab and inputs. Send it to yourself, a partner, or a financial adviser.
The Formulas
M = P × [r(1+r)n] / [(1+r)n − 1]
P = principal balance, r = monthly rate (annual rate ÷ 12), n = number of months
Time to pay off (solving for n):
n = −ln(1 − r × P / M) / ln(1 + r)
Total interest:
Interest = (M × n) − P
Avalanche strategy:
Sort debts by interest rate (highest first).
Pay minimums on all debts. Apply all extra to the #1 debt.
When #1 is paid off, roll its full payment to #2, and so on.
Snowball strategy:
Sort debts by balance (smallest first).
Pay minimums on all debts. Apply all extra to the #1 debt.
When #1 is paid off, roll its full payment to #2, and so on.
Consolidation loan payment:
M = L × [r(1+r)n] / [(1+r)n − 1]
L = total debt consolidated, r = monthly rate of new loan, n = term in months
Weighted average rate:
WAR = ∑(balancei × ratei) / ∑balancei
All calculations use standard compound interest amortisation. Results are estimates — actual payoff may vary based on your lender's payment application rules and any fees.
Worked Example
Three debts: credit card, car loan, personal loan
A typical NZ borrower has three debts:
Avalanche result (extra to credit card first)
Snowball result (extra to personal loan first)
Verdict: Avalanche saves approximately $450 in interest compared to snowball. However, snowball gives you a win at month 17 (personal loan fully paid), which can help motivation. Both strategies are far better than paying minimums only — which would cost over $7,000 in interest and take 8+ years.
NZ Consumer Credit Rates (Reference)
| Debt type | Typical NZ rate (p.a.) | Notes |
|---|---|---|
| Credit cards | 20–22% | Major banks: ASB, ANZ, BNZ, Westpac, Kiwibank |
| Store cards / retail credit | 22–26% | Often higher than bank credit cards |
| Personal loans (bank) | 8–15% | Secured loans typically lower |
| Personal loans (finance co.) | 13–25% | Varies significantly by lender |
| Car loans | 7–12% | Secured against vehicle |
| Student loan (StudyLink) | 0% | Interest-free while in NZ; 3.5% abroad |
| Mortgage | 5.5–7.5% | Variable; use Mortgage Calculator |
Rates are indicative as at early 2026. Always check your actual contract. Under CCCFA, your lender must disclose the total cost of credit including fees.
Frequently Asked Questions
No Asset Procedure (NAP): For debts of $1,000–$47,000 with no realisable assets. Provides a 12-month moratorium on most unsecured debts. You cannot apply again for 6 years.
Summary Instalment Order (SIO): Lets you repay debts in affordable instalments over up to 3 years under a formal order. Creditors cannot take action while the SIO is in force.
Bankruptcy: A 3-year process involving surrender of assets above basic necessities. Restrictions apply to travel, credit, and some occupations. Free advice: MoneyTalks 0800 345 123.