Credit Card Payoff Calculator

Credit card debt can feel overwhelming, especially when you're only making minimum payments. High interest rates mean most of your payment goes toward interest, not reducing the balance, keeping you in debt for years or even decades.

This free credit card payoff calculator helps you understand the true cost of credit card debt and see how extra payments dramatically reduce payoff time and interest costs. It shows you exactly how long it will take to become debt-free and how much interest you'll pay along the way.

Use this tool to plan your payoff strategy, see the impact of extra payments, and motivate yourself to pay off credit card debt faster.

Follow these steps to plan your credit card payoff:

1. 1

   Enter Credit Card Balance

   Input your current credit card balance. This is the amount you owe that you're paying off.

2. 2

   Enter Interest Rate

   Enter your credit card's annual interest rate (APR). This is typically 15-25% for most cards. Check your statement or online account for the exact rate.

3. 3

   Enter Minimum Payment

   Input your minimum monthly payment. This is usually 1-3% of balance or a fixed minimum (e.g., $25-35). Check your statement for the exact amount.

4. 4

   Enter Extra Payment (Optional)

   Enter any extra amount you can pay beyond the minimum. Even $50-100 extra per month dramatically reduces payoff time and interest costs.

5. 5

   Review Payoff Plan

   See how long it will take to pay off, total interest paid, and savings from extra payments. Use this to plan your payoff strategy.

Minimum Payments: Credit card minimum payments are typically 1-3% of balance or a fixed minimum ($25-35). These are designed to keep you in debt for years, maximizing interest payments. Making only minimum payments can take 10-20+ years to pay off.

Interest Costs: High interest rates (15-25% APR) mean significant interest costs. On a $5,000 balance at 18% APR with minimum payments, you could pay $3,000+ in interest over 10+ years. Extra payments save thousands.

Extra Payments: Even small extra payments ($50-100/month) dramatically reduce payoff time and interest costs. The earlier you pay, the more interest you save due to compound interest working against you.

Payoff Strategies: Focus on paying off high-interest credit cards first (Avalanche method) to save the most money. Or pay off smallest balances first (Snowball method) for psychological wins and motivation.

1. Pay More Than Minimum

Always pay more than the minimum if possible. Even $50-100 extra per month can save thousands in interest and cut years off your payoff timeline. This calculator shows the dramatic impact.

2. Stop Using Credit Cards

While paying off debt, stop using credit cards for new purchases. Cut them up or freeze them if necessary. You can't get out of debt while continuing to accumulate it.

3. Negotiate Lower Interest Rate

Call your credit card company and ask for a lower rate. Mention competitor offers and your payment history. Many will reduce rates to retain customers. Even 2-3% reduction saves significant interest.

4. Consider Balance Transfer

Transfer high-interest balances to 0% APR cards (watch for transfer fees). This can save interest, but only if you can pay off before the promotional rate expires. Don't use this as an excuse to accumulate more debt.

5. Pay Off Highest Rate First

If you have multiple cards, focus extra payments on the highest interest rate card first (Avalanche method). This saves the most money in interest over time.

6. Automate Payments

Set up automatic payments for at least the minimum to avoid late fees and credit damage. Then make additional manual payments when you have extra money.