Credit Card Payoff Calculator

See how long it will take to pay off your credit card debt and how much interest you'll pay. Compare strategies to pay off faster.

Credit Card Details

$
%
$

Minimum payment: $133

Debt-Free Date

October 2028

2 years 9 months to pay off

Total Interest

$1,521

Total to Pay

$6,521

Min. Payment

$133

Interest Rate

1,999.0%

Pay Off Faster

See how extra payments can save you money

PaymentTimeInterestYou Save
$200 (Current)2 years 9 months$1,521
$250(+$50)2 years 1 month$1,132$389
$300(+$100)1 year 8 months$906$615
$400(+$200)1 year 3 months$653$868
*

Estimates Only

Results are estimates based on fixed APR. Actual payoff time may vary.

  • Variable interest rates
  • Additional charges or fees
  • Payment timing and grace periods

How Credit Card Interest Works

Understanding how credit card interest is calculated can help you make better financial decisions and save money on interest payments.

APR vs. Daily Rate

Your credit card's Annual Percentage Rate (APR) is divided by 365 to get the daily periodic rate. This daily rate is applied to your balance each day, which means interest compounds daily.

Example: 20% APR on $5,000

  • Daily Rate: 20% / 365 = 0.0548%
  • Monthly Interest: ~$83.33
  • If only paying minimum ($100), only ~$17 goes to principal

The Minimum Payment Trap

Credit card companies typically set minimum payments at 1-3% of your balance (with a floor of $25-35). Paying only the minimum means:

  • Most of your payment goes to interest, not principal
  • A $5,000 balance at 20% APR can take 20+ years to pay off
  • You could pay over $7,000 in interest alone

Debt Avalanche vs. Debt Snowball

🏔️ Debt Avalanche

Pay off debts with the highest interest rate first while making minimum payments on others.

Best for:

Minimizing total interest paid

Debt Snowball

Pay off debts with the smallest balance first while making minimum payments on others.

Best for:

Building momentum with quick wins

Which is better? Mathematically, the avalanche method saves more money in interest. However, the snowball method provides psychological wins that help many people stay motivated. Choose the method that you're most likely to stick with.

Tips for Paying Off Credit Card Debt Faster

💰

Pay More Than Minimum

Even $50 extra per month can save thousands in interest.

📅

Pay More Frequently

Making bi-weekly payments reduces average daily balance.

🔄

Consider Balance Transfer

0% APR offers can save interest if you pay off during promo period.

🚫

Stop Adding Debt

Cut up cards or freeze them to avoid adding to your balance.

Frequently Asked Questions

Related Calculators

This calculator provides estimates for informational purposes only. Actual results may vary based on your specific credit card terms. Not financial advice.