Credit Card Payoff Calculator

Last Updated:

See exactly how long it will take to pay off your credit card and how much interest you'll pay in total.

$
%
$

Time to Pay Off

-- months

Total Interest Paid$0
Total Amount Paid$0

📐 Formula

Monthly Interest = Balance × (APR ÷ 12). Remaining Balance = Previous Balance + Interest − Payment

How to Use the Credit Card Payoff Calculator

1

Enter balance and APR

Input your card's current balance and annual interest rate. For multiple cards, calculate each separately to compare payoff strategies.

2

Set your monthly payment

Enter what you can realistically pay per month. Then experiment with higher amounts — even $50 extra can cut a year off the payoff timeline.

3

Try the avalanche vs snowball approaches

Avalanche: pay minimums on all cards, direct extra to highest-APR card first — minimises total interest. Snowball: tackle smallest balance first for psychological momentum.

4

Note the payoff date

Use this as your debt-free target date — a concrete milestone that makes abstract financial goals tangible and actionable.

Avalanche vs Snowball: The Numbers

The debt avalanche directs extra payments to the highest-APR balance while paying minimums on others. Once cleared, roll that payment to the next-highest APR. Mathematically optimal: a household with $18,000 across three cards at 26%, 20%, and 14% APR saves approximately $1,800–$2,400 in total interest using the avalanche versus the snowball, depending on balances and payment amounts.

The debt snowball pays the smallest balance first regardless of rate. The mathematical cost is slightly higher total interest, but the psychological benefit — eliminating a card entirely and experiencing a concrete win early — improves completion rates for many people. Research in behavioural finance suggests the snowball may produce better real-world outcomes because sustained behaviour change requires motivation, not just optimisation. Choose the method you will actually follow through on.

Balance Transfer Timing: When the Math Works

A 0% promotional balance transfer can eliminate 12–21 months of interest on transferred balances. Transferring $8,000 from a 24% APR card to a 0% card for 15 months saves approximately $2,400 in interest. The cost: a 3–5% transfer fee ($240–$400) and a credit inquiry. The transfer makes financial sense when the interest saved exceeds the fee and you have a concrete plan to clear the balance before the promotional period ends — when rates typically jump to 20%+.

Sources & Methodology

Calculations are based on the most current publicly available data from authoritative government and industry sources:

Frequently Asked Questions

Credit card interest uses the daily periodic rate (APR ÷ 365). Each day, interest accrues on your outstanding balance. That's why paying more than the minimum saves significant money.
On a $5,000 balance at 22.9% APR with a $100 minimum payment, it would take over 8 years to pay off and cost more than $4,000 in interest alone.
For credit cards, APRs below 15% are considered good. Most rewards cards range from 18–28%. A 0% introductory APR period is ideal for paying down existing balances.
Avalanche method (pay highest APR first) saves the most money in interest — mathematically optimal. Snowball method (pay smallest balance first) provides faster psychological wins and often leads to higher completion rates. If motivation is a concern, snowball wins. If you're disciplined, avalanche saves more money.
At 22% APR paying only the minimum (typically 2% of balance): over 30 years and $14,000+ in interest. Paying $300/month: paid off in about 4 years with $4,500 in interest. Paying $500/month: paid off in about 2.5 years with $2,700 in interest. Extra payments have an outsized impact at high APRs.

Related Calculators

Tax CalculatorPaycheck CalculatorLoan Calculator