Credit Card Payoff Calculator
Find out when you'll be debt-free and how much interest you'll pay. Enter your balance, APR, and monthly payment to see your payoff timeline. Discover how paying just a little more each month can save you thousands.
How We Calculate This
This calculator uses monthly compounding (APR ÷ 12) and assumes consistent monthly payments. It calculates the amortization schedule until the balance reaches zero.
Frequently Asked Questions
Why does paying extra save so much money?
Extra payments go directly to principal, reducing the balance that accrues interest. Even $25-50 extra per month can save hundreds or thousands in interest and pay off debt months or years faster.
Should I pay off highest interest or lowest balance first?
Mathematically, highest interest first (avalanche method) saves the most money. Psychologically, lowest balance first (snowball method) provides quick wins. Choose what keeps you motivated.
What if I can only make the minimum payment?
Minimum payments are designed to keep you in debt longer. Even paying $10-20 extra helps. Consider a balance transfer card with 0% intro APR to reduce interest while paying down principal.
How is credit card interest calculated?
Most cards use daily compounding. Your APR is divided by 365 to get a daily rate, then applied to your average daily balance. This means interest compounds on interest.
Related Calculators
You might also find these calculators helpful: Debt Payoff Calculator, and Loan Comparison Calculator.