Financial Calculators
Credit Card Payoff Calculator
Find out how long it takes to pay off a credit card balance. Compare payment strategies and see total interest paid.
Estimated minimum: $128.33
Payoff Time
37 months
(3.1 years)
Total Paid
$4,706.27
Total Interest
$1,206.27
| X | Remaining balance |
|---|---|
| 1 | $3,430.00 |
| 2 | $3,359.00 |
| 3 | $3,286.00 |
| 4 | $3,213.00 |
| 5 | $3,138.00 |
| 6 | $3,062.00 |
| 7 | $2,985.00 |
| 8 | $2,906.00 |
| 9 | $2,826.00 |
| 10 | $2,745.00 |
| 11 | $2,663.00 |
| 12 | $2,579.00 |
| 13 | $2,493.00 |
| 14 | $2,406.00 |
| 15 | $2,318.00 |
| 16 | $2,228.00 |
| 17 | $2,137.00 |
| 18 | $2,045.00 |
| 19 | $1,950.00 |
| 20 | $1,855.00 |
| 21 | $1,757.00 |
| 22 | $1,658.00 |
| 23 | $1,557.00 |
| 24 | $1,455.00 |
| 25 | $1,351.00 |
| 26 | $1,245.00 |
| 27 | $1,137.00 |
| 28 | $1,028.00 |
| 29 | $917.00 |
| 30 | $804.00 |
| 31 | $689.00 |
| 32 | $572.00 |
| 33 | $453.00 |
| 34 | $332.00 |
| 35 | $210.00 |
| 36 | $85.00 |
| 37 | $0.00 |
How credit card interest compounds
Most credit cards compound interest daily. Your daily periodic rate is the APR divided by 365. Each day, that rate is applied to the current balance. This means unpaid interest earns interest of its own, accelerating the growth of your debt whenever you carry a balance.
The minimum payment trap
Minimum payments are typically 1–2% of your balance (or a flat floor like $25–$35). At a 20% APR, paying only the minimum on a $5,000 balance can take over 20 years and $6,000+ in interest to pay off. The minimum payment is specifically designed to be the lowest amount that keeps the account current - not the amount that’s in your financial interest.
Payoff comparison: fixed vs. minimum vs. extra payment
The most dramatic insight from this calculator comes from comparing three scenarios:
- Minimum payment only: slowest payoff, highest total interest.
- Fixed monthly payment: predictable payoff timeline. Even $50 extra per month above the minimum cuts years off the payoff.
- Lump-sum extra payment: applying a tax refund or bonus directly to the principal saves disproportionate interest because future interest compounds on a smaller balance.
Adjust the monthly payment slider in the calculator to see how increasing your payment by even small amounts dramatically shortens the payoff timeline and total interest paid.
Avalanche vs. snowball method
| Method | Strategy | Best for |
|---|---|---|
| Avalanche | Pay minimums on all cards; put extra money toward the highest-interest card first | Minimizing total interest paid (mathematically optimal) |
| Snowball | Pay minimums on all cards; put extra money toward the smallest balance first | Behavioral momentum: quick wins motivate continued payoff |
Example: two cards - Card A ($5,000 at 24% APR), Card B ($1,200 at 19% APR). Avalanche targets Card A first (higher rate, more interest). Snowball targets Card B first (smaller balance, paid off faster for a psychological win). Over a 24-month payoff, the avalanche saves approximately $180–$240 in interest compared to the snowball.
Balance transfer strategy
A 0% intro APR balance transfer can save significant interest if used correctly. Key considerations:
- Balance transfer fee: typically 3–5% of the transferred amount. On a $5,000 balance, a 3% fee = $150 up front. Still worthwhile if you pay off the balance before the intro period ends.
- Intro period length: 12–21 months at 0% is common. Calculate whether you can realistically pay off the transferred balance within the intro period.
- Post-intro rate: if you carry a remaining balance at the end of the intro period, the rate typically jumps to 20–29% APR. Set a calendar reminder and have a payoff plan before the offer expires.
- Credit score impact: applying for a new card results in a hard inquiry. Opening a new account also affects your average account age. Both can temporarily lower your score by 5–10 points.