Credit Card Payoff Calculator
See exactly how long it will take to pay off your credit card debt and discover how extra payments can save you thousands in interest.
Credit Card Details
Average credit card APR: 20-25%
Usually 1-3% of balance or $25 minimum
Additional amount above minimum
See what payment is needed to pay off in this time
Minimum Payments Only
With Extra Payment
24-Month Goal
The True Cost of Minimum Payments
The Minimum Payment Trap
Credit card minimum payments are designed to keep you in debt as long as possible. Most minimum payments are just 1-3% of your balance—barely covering the interest charges.
Example: $5,000 Balance at 22.99% APR
You'd pay more than double the original balance!
The Power of Extra Payments
Even small extra payments can dramatically reduce your payoff time and interest costs:
| Extra Payment | Payoff Time | Total Interest | Interest Saved |
|---|---|---|---|
| $0 (minimum only) | 17+ years | $6,500 | — |
| +$50/month | 4 years | $2,100 | $4,400 |
| +$100/month | 2.5 years | $1,300 | $5,200 |
| +$200/month | 1.5 years | $750 | $5,750 |
*Based on $5,000 balance at 22.99% APR with $100 minimum payment
Credit Card Payoff Strategies
Avalanche Method
Pay off highest interest rate cards first while making minimum payments on others.
- ✓Mathematically optimal—saves most interest
- ✓Fastest total debt payoff
- !May take longer to see first card paid off
Snowball Method
Pay off smallest balance cards first for quick wins and motivation.
- ✓Quick psychological wins
- ✓Builds momentum and motivation
- !May pay more interest overall
Balance Transfer
Move debt to a 0% APR card and pay off during the promotional period.
- ✓0% APR for 12-21 months
- ✓Every payment goes to principal
- !3-5% transfer fee, need good credit
Debt Consolidation Loan
Replace multiple cards with a single personal loan at a lower rate.
- ✓Fixed rate and payment
- ✓Set payoff date
- !May have origination fees
How to Negotiate a Lower Interest Rate
You can often get your interest rate reduced just by asking. Here's how:
- 1Know your account history
How long you've been a customer, payment history, current rate
- 2Research competitor offers
Have examples of lower rates from other cards ready
- 3Call and ask politely
"I've been a customer for X years. Can you lower my rate?"
- 4If refused, ask for a supervisor
They often have more authority to approve rate reductions
- 5Try again in a few months
Especially if your credit score improves
Success rate: About 70% of people who ask get at least some reduction!
Frequently Asked Questions
How is the minimum payment calculated?
Most credit cards calculate minimum payment as the greater of: 1-3% of your balance, or a flat amount (usually $25-35), or the interest charges plus $10. This is designed to keep you paying for as long as possible.
Should I close cards after paying them off?
Usually no. Closing cards reduces your available credit and increases your credit utilization ratio, which can hurt your score. Keep old cards open with zero balance, or use them occasionally for small purchases and pay immediately.
Does paying off credit cards help my credit score?
Yes! Paying down balances reduces your credit utilization ratio (ideally keep it under 30%, but under 10% is even better). This is one of the fastest ways to improve your credit score, often showing results within 30-60 days.
Should I pay off one card or spread payments?
Make minimum payments on all cards to avoid late fees and credit damage. Then put all extra money toward one card (highest interest for avalanche, smallest balance for snowball). Once that card is paid off, roll its payment to the next card.
Is it worth doing a balance transfer?
If you can pay off the debt during the 0% period and the transfer fee is less than the interest you'd otherwise pay, yes. Calculate carefully: a 3% transfer fee on $5,000 is $150, but you might save $1,000+ in interest over 12-15 months.