Credit Card Payoff Calculator

Calculate how long it will take to pay off your credit card and how much interest you'll pay.

Each month: Interest = Balance x (APR / 12); Principal Payment = Monthly Payment - Interest; New Balance = Balance - Principal
$5,000 balance at 18% APR with $200/month payment: Payoff time = 2 years 11 months, Total interest = $1,823, Total paid = $6,823

How long does it take to pay off a credit card?

It depends on your balance, APR, and monthly payment. Making only minimum payments (usually 2-3% of balance) can take 10-30 years to pay off and cost more in interest than the original balance. Paying more than the minimum dramatically reduces payoff time and interest.

What happens if I only pay the minimum payment?

Minimum payments are designed to maximize bank profits. On a $5,000 balance at 18% APR, minimum payments ($100/month) would take 30+ years to pay off and cost over $10,000 in interest. Always pay more than the minimum when possible.

Should I pay off credit cards or save money first?

Generally, pay off high-interest credit card debt first (18-25% APR). Credit card interest is much higher than savings interest (3-5%). Keep a small emergency fund ($1,000-2,000), then aggressively pay down credit cards before building larger savings.

What is the avalanche vs snowball method?

Avalanche: Pay off highest interest rate cards first (saves most money). Snowball: Pay off smallest balance first (psychological wins). Avalanche is mathematically optimal, but snowball provides motivation through quick wins. Choose what keeps you motivated.