Credit Card Payoff Calculator
See how fast you can be credit card debt free. Compare minimum payments vs extra payments and discover how much you can save.
Credit Card Details
Most cards use the greater of a fixed amount or a % of balance
Amount above the minimum you can pay each month
Enter your credit card details to see your payoff plan
How Credit Card Interest Works
Credit card interest is calculated using your Annual Percentage Rate (APR), which is divided by 365 to get a daily periodic rate. Each day, the card issuer multiplies your current balance by this daily rate and adds the charge. At the end of your billing cycle, these daily interest charges are totaled and added to your balance. This means interest compounds daily — you pay interest on interest — which is why credit card debt can grow so quickly if you only make minimum payments.
The Minimum Payment Trap
Most credit cards set minimum payments as the greater of a fixed amount (typically $25) or a percentage of your balance (usually 1-3%). While this keeps your account in good standing, it means most of your early payments go toward interest rather than reducing your actual debt. On a $5,000 balance at 24.99% APR, paying only the minimum could take over 30 years and cost more than $10,000 in interest — more than double the original balance. The minimum payment is designed to keep you in debt, not to help you pay it off.
Strategies to Pay Off Credit Card Debt Faster
The most effective strategy is simply paying more than the minimum each month. Even an extra $50 or $100 can dramatically reduce your payoff timeline and total interest. Use this calculator to see the exact impact. Other strategies include the debt avalanche (targeting highest-rate cards first), the debt snowball (targeting smallest balances first), negotiating a lower APR with your card issuer, or consolidating with a personal loan at a lower rate. The best strategy is the one you'll stick with consistently.
When to Consider a Balance Transfer
Balance transfer cards offer 0% introductory APR periods (typically 12-21 months), letting you pay down principal without accruing interest. This can save you hundreds or thousands of dollars if you can pay off the balance before the promo period ends. However, most cards charge a 3-5% transfer fee, and the regular APR kicks in on any remaining balance after the intro period. A balance transfer works best when you have a clear plan to pay off the debt within the promotional window and you avoid adding new charges to either card.
More Calculators
- Debt Payoff Calculator — Compare snowball vs avalanche methods for multiple debts.
- Mortgage Payoff Calculator — See how extra mortgage payments save you thousands.