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Debt Payoff Calculator — Avalanche vs Snowball, Simulated Month by Month

Enter your debts — balance, interest rate, minimum payment — and this tool runs a real month-by-month simulation comparing the Avalanche strategy (highest interest first, mathematically optimal) against the Snowball strategy (smallest balance first, behaviourally easier to stick with), showing payoff time and total interest for each. An AI pass then coaches you on which fits your situation.

How to use AI Debt Payoff Optimizer

  1. Enter each debt's balance, interest rate and minimum payment.
  2. Set your total available monthly payment.
  3. Compare Avalanche vs Snowball payoff time and total interest.
  4. Get AI coaching on which strategy to commit to.

Frequently asked questions

Which strategy saves more money?
Avalanche (highest interest rate first) almost always saves more total interest — the simulation shows exactly how much for your specific debts, rather than asserting it as a rule of thumb.
Why would anyone choose Snowball then?
Snowball (smallest balance first) clears individual debts faster, which research on financial behaviour shows keeps more people motivated to finish — the AI coaching weighs that trade-off against your numbers.
Does it account for different interest rates changing over time?
It simulates with the rates you enter; for variable-rate debt, re-run the calculator when your rate changes to keep the payoff projection accurate.

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