Credit Card Payoff Calculator

How to Use This Calculator

Single Card:

• Enter balance and APR
• Set payment amount and frequency
• Add any one-time extra payments you're planning
• Compare with balance transfer if you want

Multiple Cards:

• Enter total monthly budget
• Add each card (up to 20)
• Pick avalanche or snowball
• See payoff order and timeline

Understanding Credit Card Interest

Daily Interest Charges

Credit cards charge interest when you carry a balance. Most cards have APRs between 15-25%.

Card companies divide your APR by 365 to get a daily rate. Daily compounding makes debt grow faster than you'd expect.

The Minimum Payment Problem

Minimum payments keep you paying for years. The payment shrinks as your balance drops, which stretches things out even longer. You barely make progress because most of each payment is interest. Minimum payments on $5,000 at 18% APR can take over 10 years. You'll pay more in interest than the original balance.

Grace Periods

Grace periods give you 21-25 days to pay your statement balance without interest charges. Pay the full statement balance by the due date and you won't pay any interest on purchases.

You lose the grace period once you carry a balance. After that, interest starts immediately on all purchases until you pay everything off and go one full billing cycle with a zero balance.

Federal Payment Protections

Federal law requires card companies to apply any payment above the minimum to your highest-rate balance first.

Avalanche or Snowball?

Avalanche Method

Pay minimums on all cards, put extra money toward the highest APR first. This saves the most in total interest. After the highest-rate card is paid off, roll that full payment into the next highest rate.

Example: Three cards at 22%, 18%, and 15%. Pay minimums on the two lower-rate cards, pay extra toward the 22% card first. After that's paid off, focus on the 18% card, then the 15%.

Best when your cards have big APR differences. Requires patience since your first payoff might take a while if the highest-rate card has a large balance.

Snowball Method

Pay minimums on all cards, put extra money toward the smallest balance first, regardless of APR.

Snowball pays off the smallest balance first, then the next smallest, regardless of rate.

Makes sense when your APRs are similar (18% vs 16%). Also helpful if you've tried paying off debt before and quit - early wins keep you going.

Which Method Works Best?

Avalanche saves money. Snowball provides faster wins. Pick whichever keeps you going.

Try avalanche first. Switch to snowball if you're losing motivation. Or pay off any debts under $500 first for early wins, then switch to highest-APR-first. This gives you motivation early without losing much money on interest.

Mistakes That Keep You in Debt

Don't Add New Charges

New purchases add to your balance. Stop using the card during payoff. Remove it from your wallet or freeze it. Use a debit card or cash instead.

Never Pay Just the Minimum

Paying only minimums takes forever. Pay more than the minimum every month, even if it's just $20-30 extra.

If you truly can only afford minimums, contact a credit counseling service.

Set Up Autopay

Late payments trigger fees and penalty APRs. They also damage your credit score. Set up autopay for at least the minimum. You can still make extra payments manually, but autopay prevents late fees.

Pay High-Rate Debt First

Paying off a 4% student loan while ignoring a 22% credit card is backwards.

Closing Cards After Payoff

Closing a paid-off card hurts your credit score. It reduces your available credit and may shorten your credit history. Keep cards open unless they have annual fees.

Keep an Emergency Fund

Save a small emergency fund first. Otherwise you'll go back into debt when expenses pop up. About $1,000 is enough to prevent backsliding.

Pay Off Faster

Pay More Each Month

Adding $50-100 per month cuts years off your timeline. Each extra dollar reduces future interest. Use the calculator above to see the impact.

Look through your spending for the past month. Find recurring charges you don't use.

Earn More

Take on extra work and put extra income toward debt.

Put Windfalls Toward Debt

Tax refunds, bonuses, birthday money - put them toward your balance.

Extra payments reduce your balance, which cuts future interest.

Balance Transfers

Moving high-interest balances to a 0% intro APR card freezes interest charges during the intro period. All payments go to principal.

Pay off the balance before the intro period ends. Account for the transfer fee (typically 3-5%) in your calculations. Stop using the old card after transferring and don't make purchases on the new card. Set up autopay to avoid missing payments.

Questions About Credit Card Debt

How is credit card interest calculated?

Card companies divide your APR by 365 to get a daily rate, which compounds daily.

What's the difference between avalanche and snowball methods?

Avalanche pays off highest-APR debt first, which saves the most money. Snowball pays off smallest balance first, which gives you wins faster. Avalanche is better mathematically. Snowball is better psychologically for some people.

Should I pay off credit cards or build savings first?

Save about $1,000 first. This buffer prevents you from going back into debt when unexpected expenses hit. After you're debt-free, build a full 3-6 month emergency fund.

Can I pay off credit cards with a personal loan?

Only if the loan APR is lower than your cards. Personal loans have fixed rates and fixed payments, which some people find easier to manage. Don't keep using the cards after consolidating.

How long does it take to pay off credit card debt?

It depends on your balance, APR, and how much you pay each month. A $5,000 balance at 18% APR takes about 30 months with $200 payments, or 19 months with $300 payments.