💳 Finance

Credit Card Payoff Calculator

See exactly how long it will take to clear your credit card balance and how much interest you will pay in total. Compare making minimum payments versus a fixed monthly amount: and see how much you can save.

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Enter your card details

Enter your balance and APR: then tap Calculate Payoff to see your payoff timeline and total interest cost.

Why Minimum Payments Are Costly

Credit card minimum payments are typically 1-3% of the outstanding balance. Because the payment shrinks as the balance falls, you end up paying interest on interest for many years. On a $5,000 balance at 22% APR, paying only the minimum (2%) takes over 22 years and costs more than the original balance in interest alone.

Fixing your monthly payment: even at a modest amount above the minimum: dramatically cuts both payoff time and total interest.

Frequently Asked Questions

What is a typical credit card APR ?
Average credit card APRs in the US are currently around 20-24% for standard cards. Store cards and sub-prime cards often charge 26-30%+. Rates vary significantly by credit score and card type.
Should I pay off credit cards before investing?
At typical credit card rates of 20%+, paying off card debt offers a guaranteed return equivalent to the APR: almost always higher than investment returns after tax. Most financial advisors recommend clearing high-interest card debt before investing, except up to any employer 401k match.
What is the debt avalanche method?
The debt avalanche involves paying minimum payments on all cards while directing any extra money to the card with the highest APR first. Once that's paid off, roll that payment to the next highest-APR card. This minimises total interest paid.