Credit Card Payoff Calculator

Why credit card debt is so expensive

Credit cards typically charge interest daily based on your APR, and that interest compounds, so you can end up paying interest on previously charged interest. With APRs often above 20 percent, an unpaid balance grows quickly.

The minimum payment is designed to keep the account current, not to clear the debt. It is usually mostly interest plus a small slice of principal, so paying only the minimum can stretch repayment over many years and cost more in interest than the original balance.

Avalanche vs snowball

Two popular payoff strategies both work. The avalanche method targets your highest-interest card first while paying minimums on the rest, which saves the most money mathematically. The snowball method clears your smallest balance first for a quick, motivating win, then rolls that payment into the next card.

Whichever you choose, stop adding new charges to the card you are paying down, and consider whether a lower-rate balance transfer or consolidation loan fits your situation. Paying any amount above the minimum shortens the timeline dramatically.

Why does paying only the minimum cost so much?

Minimum payments are often just above the interest charged, so most of the payment covers interest and the balance barely falls, stretching payoff over years and multiplying the interest paid.

How can I pay off my card faster?

Increase your monthly payment, avoid new charges, or move the balance to a lower-APR card. Even a small increase in monthly payment can cut months off the timeline.

What if my payment is too low?

If your monthly payment is lower than the monthly interest, the balance will never reduce. The calculator will flag this so you can raise the payment.

Does the calculator assume new spending?

No. It assumes you make no new purchases on the card, so the balance only goes down as you pay it off.