Credit Card Calculator

Calculate your credit card payoff timeline and total interest costs. See how extra payments can save you money.

Credit Card Details

$
%
%

Typical range: 1-3% of balance (usually around 2%)

How to Use the Credit Card Calculator

  1. Enter Current Balance: Input your current credit card balance
  2. Set APR: Enter your card's Annual Percentage Rate (found on your statement)
  3. Choose Payment Strategy: Select minimum payment percentage or enter a fixed payment amount
  4. Add Extra Payments: See how additional monthly payments reduce total interest
  5. Compare Results: View payoff timeline, total interest, and monthly payment breakdowns
  6. Plan Your Strategy: Use results to decide on the best payoff approach

Calculation Examples

Minimum Payment Only

Balance:$5,000
APR:18%
Minimum Payment:2% of balance
Starting Payment:$100
Payoff Time:~30 years
Total Interest:~$6,400

Fixed Payment Strategy

Balance:$5,000
APR:18%
Fixed Payment:$150
Extra Per Month:$50
Payoff Time:~3.5 years
Total Interest:~$1,600
Interest Saved:~$4,800

Smart Credit Card Payoff Strategies:

  • Pay More Than Minimum: Even $25 extra per month can save thousands in interest
  • Stop Using the Card: Avoid new charges while paying off existing debt
  • Consider Balance Transfers: Move debt to cards with lower APR (watch for fees)
  • Avalanche Method: Pay minimums on all cards, extra on highest APR card first

Frequently Asked Questions

Why does paying only the minimum take so long?

Minimum payments are designed to maximize interest income for card companies. Most of your payment goes to interest, not principal, especially early in the payoff process.

How much extra should I pay each month?

Pay as much as you can afford while maintaining your budget. Even an extra $25-50 per month can dramatically reduce payoff time and total interest paid.

Should I pay off credit cards or invest?

Generally, pay off high-interest credit card debt first. It's hard to find investments that consistently beat 18-25% APR credit card rates.

What if I can't afford the minimum payment?

Contact your credit card company immediately. They may offer hardship programs with reduced payments or temporarily lower interest rates.

Is a balance transfer worth it?

If you can get a significantly lower APR (including any transfer fees), it can save money. Make sure you can pay off the balance before any promotional rate expires.

How accurate are these calculations?

These calculations assume you make no new charges and payments are made on time. Actual results may vary based on your card's specific terms and payment behavior.

Understanding Credit Card Interest

Key Terms

APR (Annual Percentage Rate)

The yearly cost of borrowing, including interest and fees

Minimum Payment

Usually 1-3% of balance, mostly goes toward interest early on

Balance Transfer

Moving debt to a card with lower interest rate to save money

Payment Strategies

Debt Avalanche

Pay minimums on all cards, extra on highest APR card

Debt Snowball

Pay minimums on all cards, extra on smallest balance first

Fixed Payment

Set consistent monthly payment regardless of balance changes

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