About this Credit Card Payoff
Credit card debt can be sticky due to high interest rates that compound daily. Paying just the minimum can keep you in debt for decades. This calculator helps you plan a faster exit strategy.
How to use this calculator
- Enter your Total Balance.
- Enter the Interest Rate (APR) found on your statement.
- Input your planned Monthly Payment.
- See the Months to Payoff and Total Interest paid.
Accuracy and testing
Review formula sources, default test cases, assumptions, unit handling, rounding rules, and changelog for this calculator.
How this calculator works
Inputs explained
Card Balance
The total amount you owe on the card right now.
Interest Rate (APR)
Annual Percentage Rate. Most cards range from 15% to 29.99%.
Monthly Payment
The fixed amount you commit to paying every month. Must be higher than the interest charges.
Understanding your results
Example scenarios
Minimum Payment Trap
$5,000 balance at 20% APR. Paying $100/mo takes 9 years and costs $5,800 in interest.
Aggressive Payoff
$5,000 balance at 20% APR. Paying $300/mo takes 1.7 years and costs only $900 in interest.
Key Features
- Payoff Timeline
- Total Interest Cost
- Debt Free Date Estimator
Things to Keep in Mind
Assumes a fixed monthly payment and interest rate. Does not account for late fees or variable APRs.
Tips & Best Practices
- Stop using the card immediately while trying to pay it off.
- Consider a Balance Transfer card with 0% APR for 12-18 months to pay off the principal faster without interest.
- Use the 'Avalanche Method' (pay highest rate first) or 'Snowball Method' (pay lowest balance first) if you have multiple cards.
Glossary of Terms
- APR
- Annual Percentage Rate. The yearly cost of borrowing money.
- Principal
- The portion of your payment that reduces the actual balance owed.
- Minimum Payment
- The lowest amount you are required to pay to avoid late fees, usually 1-3% of the balance.