Credit Card Payoff Calculator
Find out how long it will take to pay off your credit card debt and how much you could save
Minimum payment: $100 (2% of balance or $25)
How to Use the Credit Card Payoff Calculator
Our credit card payoff calculator helps you determine how long it will take to pay off your credit card debt and how much interest you'll pay along the way. Here's how to use it:
Enter your current credit card balance
Input your credit card's annual interest rate (APR)
Enter your current monthly payment or choose a payoff timeline
See your results instantly, including total interest paid and payoff date
Understanding Credit Card Debt
Credit card debt can be particularly challenging to pay off due to high interest rates and the revolving nature of credit. When you only make minimum payments, most of your payment goes toward interest rather than reducing the principal balance.
Strategies to Pay Off Credit Card Debt Faster
Pay More Than the Minimum
The most effective way to pay off credit card debt faster is to pay more than the minimum payment each month. Even a small additional amount can significantly reduce your payoff time and total interest paid.
Debt Avalanche Method
With the debt avalanche method, you prioritize paying off credit cards with the highest interest rates first while making minimum payments on other cards. This approach minimizes the total interest you'll pay.
Debt Snowball Method
The debt snowball method involves paying off your smallest debts first to build momentum. While this may not save as much in interest as the avalanche method, it can provide psychological wins that keep you motivated.
Balance Transfer
Transferring high-interest credit card balances to a card with a lower interest rate or 0% introductory APR can help you save on interest and pay off debt faster. Be aware of balance transfer fees and promotional period end dates.
How Credit Card Interest Works
Credit card interest is typically calculated based on your average daily balance and applied monthly. The annual percentage rate (APR) is divided by 365 to determine the daily periodic rate, which is then multiplied by your average daily balance and the number of days in the billing cycle.
Most credit cards compound interest daily, which means interest is calculated on both the principal balance and previously accrued interest. This compounding effect can cause your debt to grow rapidly if you only make minimum payments.
The Impact of Minimum Payments
Credit card minimum payments are typically calculated as a percentage of your balance (often 2-3%) or a fixed amount (like $25), whichever is greater. Making only minimum payments extends your repayment period significantly and increases the total interest you'll pay.
Example: A $5,000 credit card balance with an 18% APR would take over 18 years to pay off if you only make minimum payments starting at 2% of the balance. You'd pay nearly $6,000 in interest, more than doubling the cost of your original purchases.
Frequently Asked Questions
How is credit card interest calculated?
Credit card interest is typically calculated by dividing your annual percentage rate (APR) by 365 to get a daily rate. This daily rate is then multiplied by your average daily balance and the number of days in your billing cycle.
What is a good strategy for paying off multiple credit cards?
Two popular strategies are the avalanche method (paying off highest interest rate cards first) and the snowball method (paying off smallest balances first). The avalanche method saves the most money, while the snowball method provides psychological wins that can help maintain motivation.
Will paying more than the minimum payment help?
Yes, paying more than the minimum payment will significantly reduce both your payoff time and the total interest you pay. Even an extra $50 per month can make a substantial difference.
How does a balance transfer affect credit card payoff?
A balance transfer to a card with a lower interest rate or 0% introductory APR can help you pay off debt faster by reducing the amount of interest that accrues. However, be aware of balance transfer fees (typically 3-5% of the transferred amount) and make sure you can pay off the balance before any promotional rate expires.
Disclaimer
This credit card payoff calculator is provided for informational and estimation purposes only. While we strive to keep our calculations accurate and up-to-date, laws and regulations change frequently, and individual situations can vary significantly. The results should not be considered as financial or tax advice.
NexusCalc does not guarantee the accuracy of calculations and is not responsible for any errors or omissions. Rates and rules may have changed since our last update. Please consult with a qualified professional before making financial decisions based on these calculations.
By using this credit card payoff calculator, you acknowledge that you are using the information at your own risk and that NexusCalc shall not be liable for any damages or losses resulting from your reliance on the information provided.
Last updated: June 2025