Credit Card Payoff Calculator
Find out how long it takes to pay off your credit card and how much interest you'll pay.
How Credit Card Interest Works
Credit cards use daily compounding interest based on your APR. If you don't pay the full balance each month, interest is charged on the remaining balance. The average credit card APR in 2026 is around 24%.
Minimum Payment Trap
Most cards require a minimum payment of 1-3% of the balance. Paying only the minimum on a $5,000 balance at 25% APR would take over 20 years to pay off and cost over $10,000 in interest — more than double what you borrowed.
Strategies to Pay Off Credit Card Debt Faster
- Avalanche method — Pay the card with the highest APR first. Saves the most interest.
- Snowball method — Pay the smallest balance first. Builds momentum and motivation.
- Balance transfer — Move debt to a 0% APR card. Save interest during the promo period.
- Debt consolidation loan — Get a personal loan at a lower rate to pay off all cards.
- Negotiate your rate — Call your card issuer and ask for a lower APR. It works more often than you'd think.
Frequently Asked Questions
How much should I pay each month?
Pay as much as you can above the minimum. Even adding $50/month to your payment can save hundreds in interest and shave years off your payoff time. Use this calculator to see the impact.
What happens if I only pay the minimum?
You'll pay dramatically more in total interest and take years or decades to clear the balance. Always try to pay more than the minimum — even a small increase makes a big difference.
Is it better to pay off credit cards or save?
If your card APR is higher than your savings rate (which is almost always true), pay the card first. You save more in interest than you earn in savings. Keep a small emergency fund, then attack the debt.