Credit Card Payoff Calculator
Calculate how long it will take to pay off your credit card debt and how much interest you'll pay. Compare minimum payments vs fixed payments.
Frequently Asked Questions
How is minimum payment calculated?
Most credit card companies set the minimum payment as a percentage of your balance (typically 1-3%) or a flat minimum (usually $25), whichever is greater. Making only minimum payments can result in decades of debt and thousands in interest.
What is a good strategy to pay off credit card debt?
Pay more than the minimum whenever possible. Consider the avalanche method (pay highest APR first) or snowball method (pay smallest balance first). Balance transfer cards with 0% intro APR can also help, but watch for transfer fees.
How does credit card interest work?
Credit cards use daily compounding. Your APR is divided by 365 to get a daily rate, which is applied to your balance each day. This means interest compounds on interest, making debt grow faster than simple interest loans.