Credit Card Calculator

Calculate credit card payments, interest costs, and payoff strategies

The Credit Card Calculator helps you understand the true cost of credit card debt and plan effective payoff strategies. Calculate minimum payments, total interest costs, and compare different payment scenarios to become debt-free faster.

Calculation Mode

Payoff Time

How long to pay off debt

Payment Amount

Required payment for goal

Credit Card Information

Current Balance ($)

Annual Interest Rate (APR) (%)

Minimum Payment (%)

Card has annual fee

Payment Strategy

Monthly Payment ($)

Minimum payment: $100

Stop making new charges

Quick Scenarios

Payoff Analysis

Enter your credit card details to calculate payoff strategy

How Credit Card Interest Works

Interest Calculation

Credit card interest is calculated daily based on your average daily balance. The formula is:

Daily Interest = (Balance × APR) ÷ 365

Monthly interest is the sum of daily interest charges for that month. This is why paying early in the month can save money.

Minimum Payment Structure

Minimum payments typically include:

1-3% of the outstanding balance
All interest charges for the month
Any fees (late fees, over-limit fees)
A minimum dollar amount (usually $25-35)

Paying only the minimum can take decades to pay off and cost thousands in interest.

Debt Payoff Strategies

Avalanche Method

Pay minimums on all cards, then put extra money toward the highest interest rate card first.

✓ Saves the most money

Snowball Method

Pay minimums on all cards, then put extra money toward the smallest balance first.

✓ Builds momentum

Balance Transfer

Move high-interest debt to a card with a promotional 0% APR period.

✓ Temporary relief

Example Calculation

Scenario: $5,000 balance, 18% APR, 2% minimum payment

Payment Strategy	Monthly Payment	Payoff Time	Total Interest
Minimum Only (2%)	$100	30 years	$11,000+
Fixed $150	$150	3 years 11 months	$2,050
Fixed $200	$200	2 years 8 months	$1,400
Fixed $300	$300	1 year 8 months	$900

Frequently Asked Questions

What happens if I only pay the minimum?

Paying only the minimum can take 20-30 years to pay off your debt and cost 2-3 times the original balance in interest. Most of your payment goes to interest, with very little reducing the principal balance.

Should I pay off credit cards or invest extra money?

Generally, pay off high-interest debt first. Credit card interest rates (15-25%) are typically higher than average investment returns (7-10%), making debt payoff a guaranteed "return" on your money.

How can I lower my credit card interest rate?

Call your credit card company and ask for a rate reduction, especially if you have good payment history. Consider balance transfers to cards with promotional 0% APR periods, or look into personal loans with lower rates.