Debt-free date and total interest paid.
Debt-free date and total interest paid.
Enter your current credit card balance, APR (Annual Percentage Rate), and the fixed monthly payment you plan to make. The calculator simulates month-by-month repayment, showing exactly how many months until you're debt-free, your total interest paid, and your payoff date.
Credit card interest is typically compounded daily and applied monthly. This calculator uses monthly compounding (APR รท 12) as an approximation, which is accurate for most practical purposes.
Credit cards set minimum payments at roughly 1โ2% of the balance โ often just barely covering the monthly interest. At 24.99% APR on a $5,000 balance, a $100/month minimum payment would take over 9 years and cost $6,000+ in interest. Doubling your payment dramatically shortens the timeline and saves thousands.
Two popular methods: Avalanche โ pay minimums on all cards, put extra money toward the highest-APR card first. This minimizes total interest. Snowball โ pay minimums on all cards, put extra money toward the smallest balance first. This provides psychological wins and momentum. Avalanche is mathematically optimal; snowball works better for people who need motivation from visible progress.
A balance transfer to a 0% intro APR card can be very effective โ all of your payments go directly to principal for 12โ21 months. Watch for transfer fees (usually 3โ5%) and make sure to pay off the balance before the promotional period ends, after which rates typically jump to 19โ29%. Only effective if you have disciplined payment habits.
Even small extra payments have a big impact. On a $5,000 balance at 24.99% APR, paying $200/month pays it off in about 29 months with ~$800 in interest. Paying $300/month cuts it to 19 months and only ~$500 in interest โ saving $300 by paying $100 more per month for 10 fewer months.