Credit Card Payoff Calculator
Discover exactly how long minimum payments will keep you in debt — and how much interest you'll hand over. Compare strategies side by side and see what paying more really saves you.
Credit Card Details
Enter your card details and click Calculate Payoff to see results.
We'll compare two payment strategies side by side.
Understanding Credit Card Interest
The Minimum Payment Trap
Minimum payments are designed to keep you in debt as long as possible. Credit card companies profit on every month you carry a balance — and minimum payment formulas are carefully calculated to maximize interest income while keeping payments "affordable" enough that you don't pay off the card.
A $5,000 balance at 22% APR, paying only the 2% minimum, takes over 30 years to pay off and costs more in interest than the original balance. The math is brutal.
How Credit Card Interest Is Actually Calculated
Daily Periodic Rate (DPR) = APR ÷ 365
Daily Interest = Balance × DPR
Monthly Interest ≈ Balance × (APR ÷ 12)
Interest accrues daily on your average daily balance, not just the balance on your statement date. This means that even a payment made mid-cycle reduces your interest charge for that month. Pay as early as possible.
Impact of APR on Total Cost
| APR | Min. payoff time | Total interest paid |
|---|---|---|
| 15% | ~14 years | ~$3,700 |
| 20% | ~22 years | ~$6,800 |
| 25% | ~35+ years | ~$12,000+ |
| 29.99% | Never (barely covers interest) | Infinite |
*Based on $5,000 balance, 2% minimum payment, $25 floor.
Proven Payoff Strategies
Avalanche Method
Best for interest savingsPay minimums on all cards, then throw every extra dollar at the highest-APR card. Mathematically optimal — saves the most interest.
Snowball Method
Best for motivationPay minimums on all cards, then attack the smallest balance first. Psychologically motivating — you get wins quickly, which builds momentum.
Balance Transfer
Best if you can qualifyMove your balance to a 0% APR promotional card. Can save thousands if you pay off before the promo period ends. Watch for transfer fees (typically 3–5%).
Personal Loan Refinance
Best for large balancesReplace high-APR card debt with a fixed-rate personal loan at a lower rate. Turns revolving debt into an installment loan with a defined payoff date.