Credit Card Payoff Calculator
See the true cost of your debt and find your fastest path to freedom. Compare payoff strategies and avoid the minimum payment trap.
📚 Master Your Credit Card Debt
⚠️ The Minimum Payment Trap
Minimum payments are designed to keep you in debt. On a $5,000 balance at 20% APR, your $100 minimum payment covers $83 in interest and only $17 in principal. That's why it takes 20+ years to pay off.
Escape: Pay at least $50-$100 more than the minimum to make real progress.
📊 How Credit Card Interest Works
Credit cards use daily compounding: APR ÷ 365 = Daily Periodic Rate (DPR). Your balance × DPR = daily interest. Yesterday's interest becomes part of today's balance, so you pay interest on interest.
Tip: Pay early in the billing cycle to reduce your average daily balance.
🏔️ Avalanche vs Snowball Method
Avalanche: Pay off highest interest rate first (saves most money). Snowball: Pay off lowest balance first (builds momentum). Both work—choose based on your personality.
Golden rule: Always pay minimums on all cards, then attack one target card with extra money.
🔄 Balance Transfer Strategy
0% APR balance transfer cards give you 12-21 months interest-free. Transfer fee is 3-5%, but you save way more by stopping interest. Divide balance by promo months to calculate required monthly payment.
Example: $5,000 ÷ 15 months = $334/month to finish before interest returns.
💰 Extra Payment Impact
Even small extra payments make a huge difference. Adding $50/month to a $5,000 balance at 18% APR saves $1,200+ in interest and cuts payoff time from 8 years to 4 years.
Strategy: Apply tax refunds, bonuses, or side hustle income directly to principal.
✅ Debt Consolidation Options
Consolidate multiple cards into one payment via: personal loan (8-15% APR vs 18-25% credit card), balance transfer card (0% for 12-21 months), or home equity loan (lower rate but risky—home is collateral).
Best for: Multiple high-interest cards with good credit score (680+).
How to Use This Credit Card Payoff Calculator
Enter Your Debt Details
Input your current balance, interest rate (APR), and current monthly payment.
Test Different Payment Amounts
Try increasing your monthly payment by $50, $100, or more to see the impact on payoff time and interest saved.
Compare Strategies
See the difference between minimum payments and aggressive payoff. Choose a plan that fits your budget.
Frequently Asked Questions
How long will it take to pay off my credit card?
It depends on your balance, interest rate (APR), and monthly payment. Making only minimum payments can extend your debt for 15-25 years. For example, a $5,000 balance at 18% APR with $100 minimum payments takes 8 years and costs $4,300 in interest. Increasing your payment to $200/month cuts this to 2.5 years and saves $3,200. Our calculator shows your exact payoff date based on your payment amount.
What is the minimum payment trap?
Minimum payments are designed to cover mostly interest (80-90% of payment), paying down very little principal. This keeps you in debt longer and maximizes profit for the credit card company. On a $5,000 balance at 20% APR, your $100 minimum payment covers $83 in interest and only $17 in principal. As your balance drops, your minimum payment drops too, slowing progress even more. This is why paying only minimums can take 20+ years.
How much can I save by paying extra?
Even a small extra payment (like $50/month) can save you hundreds or thousands in interest and shave months or years off your debt repayment timeline. For example, on a $5,000 balance at 18% APR: paying $150/month instead of $100/month saves $1,200+ in interest and cuts payoff time from 8 years to 4 years. The higher your interest rate and balance, the more you save by paying extra.
Should I use the snowball or avalanche method?
Both methods work—choose based on your personality. Avalanche method: Pay off the card with the highest interest rate first. This is mathematically optimal and saves the most money. Snowball method: Pay off the card with the lowest balance first. This builds psychological momentum with quick wins. If you need motivation, use snowball. If you want maximum savings, use avalanche. Either way, always pay minimums on all cards and attack one target card with extra payments.