Credit Card Payoff Calculator
Calculate how long it will take to pay off your credit card debt and how much interest you'll pay. Compare minimum payments vs fixed payments to optimize your debt payoff strategy.
Credit Card Payoff Results
Payment Analysis:
About
Our Credit Card Payoff Calculator helps you understand how long it takes to pay off credit card debt and compares different payment strategies to save money on interest.
Why Choose
Accurate calculations using compound interest formulas, detailed payment comparisons, and comprehensive analysis to help you make informed financial decisions.
Features
Compare minimum vs fixed payment strategies, calculate total interest costs, determine payoff timelines, and visualize potential savings from higher payments.
Benefits
Reduce debt faster, save money on interest payments, create effective debt payoff strategies, and gain financial freedom through informed planning.
Enter Details
Input your current credit card balance, annual interest rate (APR), and minimum monthly payment required by your card issuer.
Add Fixed Payment
Optionally enter a fixed monthly payment amount to compare strategies and see potential savings from paying more than the minimum.
Review Results
Analyze payoff timelines, total interest costs, and savings potential to choose the best debt repayment strategy for your situation.
Frequently Asked Questions - Credit Card Payoff Calculator
Credit card interest is typically calculated daily based on your average daily balance, then compounded monthly. The annual percentage rate (APR) is divided by 365 to get the daily rate, which is applied to your balance each day.
Making only minimum payments extends your payoff time significantly and increases total interest paid. Most of each minimum payment goes toward interest rather than principal, making debt elimination very slow and expensive.
Even small additional payments make a big difference. Try to pay at least 2-3 times the minimum payment if possible. Any extra amount goes directly toward principal, reducing your balance and interest charges faster.
Yes, the "debt avalanche" method of paying minimums on all cards while putting extra money toward the highest interest rate card saves the most money. This strategy minimizes total interest paid over time.
This calculator works for individual cards. For multiple cards, calculate each separately or combine balances with a weighted average interest rate. Consider using debt consolidation strategies for multiple high-interest debts.