Credit Card Payoff Calculator
Debt-Free Date · Total Interest · Savings
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Enter your balance and monthly payment to see your debt-free date.
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How Credit Card Interest Works
Credit card interest is calculated daily. Your APR divided by 365 gives the daily periodic rate. Every day you carry a balance, interest accrues on that balance. When you make only the minimum payment, most of it goes to interest, leaving your principal barely touched.
A $5,000 balance at 22.99% APR with only minimum payments ($100/month) would take over 20 years to pay off and cost nearly $10,000 in interest alone. Raising the payment to $200/month cuts payoff time to under 3 years and saves over $7,000.
Two Proven Payoff Strategies
Avalanche Method
Pay minimums on all cards, then put every extra dollar toward the highest-APR card first. Mathematically optimal — minimizes total interest. Best for people motivated by numbers and long-term savings.
Snowball Method
Pay minimums on all cards, then attack the smallest balance first. More interest paid overall, but quick wins build momentum. Research shows snowball users stay consistent longer.
Balance Transfer (0% APR)
Transfer high-APR balances to a 0% intro card (12 to 21 months). Fees are usually 3 to 5% of balance. Aggressively paying during the 0% period can eliminate interest entirely on transferred amounts.
Debt Consolidation Loan
A personal loan at 8 to 15% APR used to pay off 22 to 29% APR credit card debt converts revolving high-interest debt into a fixed installment loan. Saves significant interest for good-credit borrowers.
Estimates assume a fixed payment and no new charges added to the card. Actual payoff time may vary based on your issuer's minimum payment formula. Not financial advice.
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Credit Card Payoff Questions
How long will it take to pay off my credit card making minimum payments?+
It depends on your balance, APR, and minimum payment formula. Most issuers set the minimum at 1 to 2% of the balance or $25, whichever is greater. At 22.99% APR on a $5,000 balance with 2% minimum payments, you would pay for over 20 years and pay more than the original balance in interest. The minimum payment is designed to keep you in debt as long as possible. Use this calculator to see exactly how long your situation will take.
What is the average credit card interest rate in 2026?+
The average credit card APR in 2026 is approximately 21 to 24% for accounts that carry a balance. Rewards cards often carry rates of 24 to 29%. Store cards can reach 29 to 35%. Balance transfer and 0% intro APR offers are available to good-credit borrowers, typically 0% for 12 to 21 months then reverting to 18 to 29% regular APR.
Should I use the avalanche or snowball method to pay off credit cards?+
Financially, the avalanche method (highest APR first) always saves more money. If two cards have balances of $3,000 at 28% and $500 at 18%, paying the 28% card first minimizes total interest. The snowball method (lowest balance first) pays more interest overall but provides faster psychological wins. Research shows snowball users pay off debt faster because of the motivation boost. Choose based on what keeps you most consistent.
Does a balance transfer make sense to pay off credit card debt?+
A balance transfer to a 0% intro APR card is one of the most powerful debt payoff tools for good-credit borrowers. Key points: balance transfer fees are typically 3 to 5% of the amount transferred. The 0% period usually lasts 12 to 21 months. You must pay off the balance before the promotional period ends or the remaining balance accrues interest at the regular APR. Divide your balance by the number of 0% months to find the payment needed to be debt-free before the rate resets.
How does credit card interest work?+
Credit card interest is calculated daily. Your APR divided by 365 gives the daily periodic rate. Every day you carry a balance, interest accrues on that balance. On a $5,000 balance at 22.99% APR, daily interest is approximately $3.15. When you make only the minimum payment, most of it goes to interest, leaving your principal barely touched. This is why minimum payments can keep you in debt for decades.
How much do I save by paying extra on my credit card?+
The savings are dramatic. On a $5,000 balance at 22.99% APR with $150 minimum payments, paying an extra $100 per month saves over $1,500 in interest and cuts payoff time by more than 18 months. The exact savings depend on your balance, APR, and current payment. Use the extra payment field in the calculator above to see your personal savings.
What happens if I only pay the minimum payment?+
If you only pay the minimum, most of each payment goes to interest rather than reducing your balance. On a typical $5,000 balance at 22.99% APR, a 2% minimum payment of $100 per month would take over 20 years to pay off and cost nearly $10,000 in interest. The card issuer profits most when you pay the minimum. Even an extra $25 per month makes a significant difference.
Is debt consolidation better than paying off credit cards individually?+
A personal loan at 8 to 15% APR used to pay off 22 to 29% APR credit card debt can save significant interest for good-credit borrowers. It converts revolving high-interest debt into a fixed payment installment loan. The key risk: once cards are paid off, some people accumulate new balances, resulting in both card and loan debt. Cut or freeze the cards after consolidation to avoid this trap.
How do I calculate my credit card payoff date?+
The payoff date is calculated using the loan amortization formula: n = -log(1 - rB/P) / log(1+r), where B is balance, r is monthly interest rate (APR/12), and P is monthly payment. This calculator handles the math automatically. Enter your balance, APR, and monthly payment above to see your exact debt-free date plus total interest paid.
What credit card payoff strategy saves the most money?+
The avalanche method saves the most money. Pay minimums on all cards, then direct every extra dollar to the highest-APR card. Once paid off, roll that payment to the next highest-APR card. This minimizes total interest across all debt. Combining avalanche with a balance transfer on the highest-APR card can save even more. The snowball method costs more in interest but can be more motivating for some people.