Credit Card Payoff Calculator
Find out exactly when you'll be debt-free and how much interest you can save by paying more each month.
The Minimum Payment Trap
At 20% APR with a $5,000 balance, paying the minimum (~$100/mo) costs over $9,000 in interest. Doubling your payment cuts that dramatically.
Quick Tips
- Never pay only the minimum
- 0% APR balance transfers can pause interest
- Paying bi-weekly instead of monthly reduces interest
- Target the highest APR card first (avalanche)
Frequently Asked Questions
Credit cards use the Average Daily Balance method. Interest = Average Daily Balance × Daily Rate × Days in Billing Cycle. The APR is divided by 365 to get the daily rate.
Paying only the minimum (usually 1–3% of balance) means most of your payment goes to interest, not principal. A $5,000 balance at 20% APR can take over 27 years to pay off with minimum payments.
The avalanche method pays highest-interest cards first (saves the most money). The snowball method pays smallest balances first (provides motivational wins). Both beat making only minimum payments.