Credit Card Payoff Calculator
Calculate how long it will take to pay off your credit card balance
Credit Card Details
Payoff Results
| Year | Balance | Interest | Principal |
|---|---|---|---|
| Enter your details and click Calculate to see results | |||
About Credit Card Payoff
This calculator helps you determine how long it will take to pay off your credit card balance based on your current balance, interest rate, and payment strategy. You can choose between making fixed monthly payments or paying a percentage of your balance each month.
How It Works
The calculator uses the average daily balance method to calculate interest charges, which is the most common method used by credit card issuers. Here’s how it works:
- Enter your current credit card balance and annual percentage rate (APR)
- Choose your payment strategy (fixed amount or percentage of balance)
- The calculator projects each month’s payment, interest charges, and remaining balance
- Results show when you’ll be debt-free and how much interest you’ll pay
Tips for Paying Off Credit Cards Faster
- Pay more than the minimum payment each month
- Consider transferring your balance to a card with a lower interest rate
- Make payments bi-weekly instead of monthly to reduce interest
- Use windfalls (tax refunds, bonuses) to make extra payments
- Focus on paying off the highest interest rate cards first
Understanding APR
APR (Annual Percentage Rate) is the yearly interest rate charged on outstanding credit card balances. Credit cards typically have higher APRs than other types of loans because they are unsecured debt. The average credit card APR is around 20%, but rates can vary widely based on your creditworthiness.
Calculation Methods
Credit card companies use different methods to calculate interest charges. Our calculator uses the most common method:
- Average Daily Balance Method: The balance is averaged over the billing cycle, then multiplied by the daily periodic rate (APR divided by 365) and the number of days in the billing cycle.