Credit Card Payoff Calculator
U.S. credit cards charge an average APR of around 22%–28% — by far the most expensive everyday borrowing most people will ever do. This calculator shows the painful reality of paying just the minimum each month versus committing to a fixed monthly payoff, so you can see how much interest and time a slightly bigger payment actually saves.
How is this calculated?
Each month, interest is added at the monthly periodic rate (APR ÷ 12) and the payment is deducted. The minimum-payment scenario typically uses the greater of $25 or 1% of the balance plus that month’s interest — common U.S. card terms post-CARD Act. The fixed-payment scenario applies the same dollar amount every month until the balance hits zero. Months to clear and total interest are returned for both. Promotional 0% balance transfer APRs can be modeled by setting APR to 0 for the promo window.
Frequently Asked Questions
Why is paying only the minimum so bad?
Because the minimum is calibrated to keep the issuer's interest income flowing. On a $5,000 balance at 24% APR, paying only the minimum can take over 22 years to clear and cost more than $7,000 in interest — well above the original debt. Paying a flat $200 a month clears the same balance in around 32 months.
Should I use a 0% balance transfer card?
If you can clear the balance within the 0% window (typically 12–21 months), almost always yes — even after the typical 3%–5% transfer fee. Set up an automatic payment for (balance + fee) ÷ promo months so you finish before the standard rate kicks in. Don't make new purchases on the new card.
Avalanche or snowball?
Avalanche (highest APR first) saves the most interest mathematically. Snowball (smallest balance first) gives faster psychological wins as debts disappear quickly. The right answer is whichever you actually stick with — momentum matters more than mathematical optimality, and consistency beats brilliance every time.
Will paying off a card hurt my credit score?
No, the opposite. Lower credit utilization (balance ÷ limit) helps your FICO score, and a long-standing card showing on-time payments is a positive signal. Keep paid-off cards open unless you're paying an annual fee — closing them can shrink available credit and shorten your average account age.
Last updated: May 2026 · Rates sourced from IRS