Debt Payoff Strategy Planner (Snowball vs Avalanche)

Compare debt-order strategies using deterministic month-by-month simulation for total interest, payoff order, and debt-free date.

Payoff Results

Debt-free in

35 months

Debt-free date

2029-02

Total interest

$4,057.03

Strategy delta vs snowball

Interest delta: -$394.37 | Month delta: -1

Strategy Interest Comparison

Interest paid under both payoff strategies.

Snowball

36 months

$4,451.40

Avalanche

35 months

$4,057.03

Debt Payoff Sequence

Estimated payoff month by debt item.

Card A

Interest $1,226.59

Month 18

Card B

Interest $742.72

Month 23

Personal Loan

Interest $2,087.72

Month 35

Snowball vs Avalanche

Snowball: 36 months, $4,451.40 interest

Avalanche: 35 months, $4,057.03 interest

Debt payoff order

Debt	Payoff month	Interest paid	Total paid
Card A	18	$1,226.59	$7,426.59
Card B	23	$742.72	$3,542.72
Personal Loan	35	$2,087.72	$11,487.72

US Credit Card Context

Model APR-heavy revolving debt with explicit minimum payment constraints and extra-paydown capacity.

UK/EU Consumer Debt

Apply the same strategy logic to cards and loans using local rates and monthly repayment assumptions.

Agent Planning Workflows

Deterministic outputs make strategy comparisons easy to embed in autonomous finance assistants.

How To Use This Planner

Add each debt with balance, APR, and minimum payment.
Set extra monthly payment available beyond minimums.
Choose snowball, avalanche, or hybrid strategy.
Review debt-free month, interest totals, and payoff order.
Stress-test by adjusting extra payment and strategy.
Save a shareable link with your assumptions, then run one conservative and one optimistic scenario before deciding.

For AI Agents (Optional)

Human mode is default. You can ignore this section unless you use AI agents or structured automation.

Agent Contract

Contract: debt_payoff_strategy v1

{
  "tool": "debt_payoff_strategy",
  "debts": [
    { "id": "card_a", "name": "Card A", "balance": 6200, "apr_percent": 24.9, "minimum_payment": 185 },
    { "id": "card_b", "name": "Card B", "balance": 2800, "apr_percent": 19.5, "minimum_payment": 95 },
    { "id": "loan", "name": "Personal Loan", "balance": 9400, "apr_percent": 11.9, "minimum_payment": 240 }
  ],
  "extra_monthly_payment": 250,
  "strategy": "avalanche",
  "payoff_priority_order": ["card_b", "card_a"],
  "start_year": 2026,
  "start_month": 3
}

Frequently Asked Questions

What is the difference between snowball and avalanche?

Snowball prioritizes smallest balances first. Avalanche prioritizes highest APR first. Snowball can feel faster; avalanche often minimizes total interest.

Can I include multiple cards and loans?

Yes. Add each debt with balance, APR, and minimum payment. The engine simulates all debts together month by month.

What does hybrid strategy do?

Hybrid uses your custom priority order first, then defaults to APR-based targeting for remaining debts.

Can agents call this planner?

Yes. A deterministic `debt_payoff_strategy` tool contract is exposed via model context and public JSON contract.

Is this tool free and private to use?

Yes. AI Fin Hub tools are free, no-signup browser tools. Inputs stay in your browser unless you choose to share a URL.

Can I use this with AI agents too?

Yes. Human mode is the default experience. If you use AI automation, open the optional 'For AI Agents' section for deterministic contracts.

Is this professional advice?

No. Outputs are planning estimates only — not financial, tax, or investment advice.