Credit Card Payoff Calculator

Why Paying Off Credit Card Debt Matters

High-interest credit card debt can grow quickly due to compounding interest. This calculator helps you understand how long it will take to become debt-free and how much you’ll pay in interest — empowering you to make smarter repayment decisions.

How to Use This Calculator

• Current Balance: Total amount you owe
• APR: Annual Percentage Rate (check your statement)
• Monthly Payment: What you plan to pay each month
• Enter any format — we extract numbers from text, symbols, and units
• Click "Calculate Payoff" to see your timeline and total cost

Formula Used

Where:

• n = Number of months to payoff
• P = Monthly payment
• B = Balance (principal)
• r = Monthly interest rate (APR / 12)
• Total Interest = (P × n) - B

Example: $5,000 balance, 18.99% APR, $200/month
→ Payoff Time: 32 months → Total Interest: $1,380

Impact of Increasing Payments

Debt Payoff Strategies

• Debt Avalanche: Pay off highest-interest cards first (saves most money)
• Debt Snowball: Pay off smallest balances first (builds momentum)
• Balance Transfer: Move debt to 0% intro APR card (watch for fees)
• Debt Consolidation: Combine into a lower-interest personal loan
• Minimum Payment Trap: Only paying minimums can take decades!

Tips to Pay Off Faster

• ✅ Pay more than the minimum — even $25 extra helps
• ✅ Use windfalls — bonuses, tax refunds, gifts
• ✅ Cut discretionary spending — dining out, subscriptions
• ✅ Stop using the card — avoid adding to the balance
• ✅ Avoid cash advances — they accrue interest immediately

Advanced Tips

• Auto-pay: Set up automatic payments above minimum
• Bi-weekly payments: Pay half monthly amount every 2 weeks = 1 extra payment/year
• Refinance: Look into credit unions or balance transfer cards
• Emergency Fund: Save $500–$1,000 to avoid future debt
• Credit Score: Paying down balances improves utilization (30% of score)