Credit Card Payoff Calculator

See your exact debt-free date, total interest, and compare avalanche vs snowball strategies

Min payment: —
Debt-Free In
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Total Interest
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Total Paid
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Principal + Interest

What if I pay more each month?

+$0 +$500
Current Plan
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With Extra Payment
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Payoff Timeline

Current plan —

Balance Transfer Comparison

How the Credit Card Payoff Calculator Works

This calculator uses a month-by-month simulation — the same math your credit card company uses. Each month, interest is added to your balance and your payment is subtracted. The process repeats until the balance hits zero.

The Core Formula

Each month:

  1. Interest charge = Current Balance × (APR ÷ 12)
  2. New balance = Current Balance + Interest − Your Payment
  3. Repeat until balance = $0

For example: $5,000 balance at 24.99% APR, paying $150/month. Month 1: interest = $5,000 × (0.2499/12) = $104.13. New balance = $5,000 + $104.13 − $150 = $4,954.13. This continues for 57 months until paid off.

Avalanche vs Snowball

With multiple cards, there are two common payoff strategies:

  • Avalanche: Pay minimums on all cards, then put every extra dollar toward the card with the highest APR. Mathematically optimal — minimizes total interest paid.
  • Snowball: Pay minimums on all cards, then put every extra dollar toward the card with the smallest balance. Provides quick wins — first card paid off sooner, which can improve motivation.

When a card reaches zero balance, the payment you were making on it rolls over to the next card in the priority order. This "rolling" payment is what makes both strategies powerful.

Minimum Payment Warning

If you only make minimum payments (typically 2% of balance or $25, whichever is greater), the payoff timeline extends dramatically. On a $5,000 balance at 24.99% APR, minimum-only payments take over 20 years and cost more than $7,000 in interest.

Carrying a high-interest balance? A 0% intro APR balance transfer could save hundreds.

Compare balance transfer offers to find the best intro period and lowest transfer fee for your situation.

Frequently Asked Questions

What is the avalanche method for paying off debt?
The avalanche method prioritizes paying off the card with the highest interest rate first while making minimum payments on all others. This mathematically minimizes total interest paid and is the fastest way out of debt in dollar terms.
What is the snowball method for paying off debt?
The snowball method prioritizes paying off the card with the smallest balance first, regardless of interest rate. This provides quick psychological wins and may improve consistency for some people. The math favors avalanche, but snowball wins on motivation.
How is the minimum payment on a credit card calculated?
Most credit card companies charge a minimum of 2% of the outstanding balance or $25, whichever is greater. Some issuers use 1% of the balance plus interest and fees. This calculator uses the 2%/$25 rule as a common baseline.
How much interest will I pay if I only make minimum payments?
Making only minimum payments can result in paying 2–3 times the original balance in interest over many years. For a $5,000 balance at 24.99% APR, minimum-only payments take 20+ years and cost over $7,000 in interest. Use the calculator above to see your exact figures.
Does a balance transfer save money on credit card interest?
A 0% intro APR balance transfer can save significant interest if you pay off the balance before the introductory period ends. Factor in the transfer fee (usually 3–5%) when comparing options. The balance transfer section above models this comparison for your specific numbers.
How much faster will I pay off my debt with an extra $100/month?
Extra payments reduce both the principal faster and the daily interest accrued. The effect compounds — each month you owe less, so less interest accrues, so even more of your payment hits principal. Use the extra payment slider above to see the exact months saved and interest saved for your specific balance.