Find out how long it will take to pay off a credit card and how much interest it will cost, test extra payments or a balance transfer, and compare payoff strategies across several cards.
Basic Credit Card Payoff Calculation
Advanced Payoff Strategy Analysis
Multi-Card Debt Strategy & Optimization
What this credit card calculator does
- Basic: balance, APR and a monthly payment to the payoff time, total payments and total interest.
- Intermediate: adds an extra monthly payment, new purchases, and a balance transfer offer (transfer rate, fee and promotional months), with the interest saved compared with minimum payments.
- Advanced: up to three cards and a monthly budget, using the debt avalanche, debt snowball or a balanced method.
How it is calculated
Each month, interest is the balance × APR ÷ 12, and the rest of your payment reduces the balance. The calculator repeats this until the balance reaches zero. If the payment does not cover the monthly interest, the balance would never be paid off, and the calculator asks you to increase it.
- Avalanche: extra money goes to the card with the highest APR first, which usually minimises interest.
- Snowball: extra money goes to the smallest balance first, for quick wins.
- Balanced: extra money goes to the card with the highest APR × balance (the biggest interest cost) first.
- When a card is paid off, its minimum payment is added to the extra money for the next month.
Worked examples: a $5,000 balance at 18% APR paid at $150 a month takes 47 months and costs $1,984 in interest, $6,984 in total. With three cards ($2,000 at 24% with a $60 minimum, $5,000 at 18% with a $100 minimum, and $300 at 15% with a $25 minimum) and a $500 monthly budget, the avalanche method takes 17 months and $1,059 of interest, the snowball takes 18 months and $1,113, and the balanced method takes 18 months and $1,182.
Things to keep in mind
Real cards calculate interest daily, change minimum payments as the balance falls, and may charge fees, so actual results will differ slightly. A balance transfer has a fee and a promotional period, and the regular rate applies afterwards. These results are estimates for general information only and are not financial, tax, investment or legal advice. Real products have fees, rules and rates that differ, so check the details with your lender, provider or a qualified adviser.
Frequently asked questions
Which is better, avalanche or snowball?
Avalanche usually costs less in interest. Snowball can keep you motivated by clearing small balances first. The best one is the one you will stick with.
Why does paying only the minimum take so long?
Much of each minimum payment goes to interest, so the balance falls slowly.
Looking for more? See all our free financial calculators.