Credit Card Payoff Calculator
Plan your debt repayment strategy, calculate payoff time, and see how much interest you'll pay.
Calculation Results
Strategy Comparison
How is this calculated?
We use standard amortization formulas. The number of months (n) to pay off a balance (B) with a monthly payment (P) at a monthly interest rate (r) is:
If r > 0: n = -log(1 - (B*r)/P) / log(1+r)
If r = 0: n = B / P
The monthly rate 'r' is calculated as (APR / 100) / 12.
The required monthly payment (P) for a target number of months (n) is:
P = (r * B) / (1 - (1 + r)^-n)
What Is a Credit Card Payoff Calculator and Why Use It?
A credit card payoff calculator is a financial tool designed to help you understand and manage your credit card debt. By inputting your outstanding balance, Annual Percentage Rate (APR), and monthly payment amount, the calculator estimates how long it will take to become debt-free. It also calculates the total amount of interest you'll pay over that period. Using this tool empowers you to visualize your debt-free date, motivating you to stick to your payment plan. It also reveals the true cost of your debt, which can encourage you to pay more than the minimum and save a significant amount of money in the long run.
How We Calculate Payoff Time & Interest
Our calculator uses the standard loan amortization formula to determine your payoff schedule. First, your annual APR is converted into a monthly interest rate (r = APR / 12 / 100). Each month, we calculate the interest accrued on your remaining balance (Interest = Balance × r). This interest is subtracted from your monthly payment to determine how much principal you've paid down (Principal Paid = Payment - Interest). The new balance is then calculated (New Balance = Old Balance - Principal Paid). This process is repeated month after month until the balance reaches zero. The total interest is the sum of all the monthly interest charges throughout the payoff period. For multiple cards, we simulate this process for each card according to your chosen repayment strategy.
Debt Snowball vs. Debt Avalanche — Which Works Best?
Both the Debt Snowball and Debt Avalanche are popular strategies for tackling multiple debts, and the "best" one depends on your personality and financial goals.
- Debt Avalanche: With this method, you make minimum payments on all your debts and use any extra money to pay down the debt with the highest interest rate (APR). Mathematically, this is the most efficient strategy. It minimizes the total interest you pay and gets you out of debt the fastest. However, it might take a while to pay off your first debt, which can feel discouraging.
- Debt Snowball: This strategy focuses on momentum. You make minimum payments on all debts and put extra cash toward the one with the smallest balance first. Once that's paid off, you "snowball" its payment into the next-smallest debt. This method provides quick psychological wins, building confidence and keeping you motivated. While you may pay slightly more in interest compared to the avalanche method, many people find it easier to stick with.
Our calculator lets you compare both strategies to see which one saves you more money and how they affect your payoff timeline.
Practical Tips to Speed Up Payoff and Reduce Interest
- Pay More Than the Minimum: Even a small extra payment each month can dramatically reduce your payoff time and total interest.
- Use the Bi-Weekly Payment Method: Make half of your monthly payment every two weeks. This results in 26 half-payments a year, equivalent to 13 full monthly payments, accelerating your payoff without feeling like a major budget change.
- Negotiate a Lower APR: Call your credit card company and ask for a lower interest rate, especially if you have a good payment history. A lower APR means more of your payment goes toward the principal.
- Look for a 0% Balance Transfer Offer: Transferring your high-interest balance to a card with a 0% introductory APR can give you a window (typically 12-21 months) to pay down the principal without accruing interest. Be mindful of transfer fees.
- Cut Expenses and Increase Income: Review your budget for areas to cut back. Consider a side hustle to generate extra income that can be directed entirely toward your debt.
Frequently Asked Questions
This section is covered by the JSON-LD schema in the head of this document, providing structured data for search engines based on common user queries about credit card debt repayment.
Disclaimer: This calculator is for informational purposes only and does not constitute financial advice. The results are estimates based on the information you provide. Please consult with a qualified financial professional for personalized advice regarding your financial situation.
