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Credit Card Payoff Calculator

See how long it takes to pay off credit card debt with minimum vs fixed payments. Calculate interest savings.

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The Minimum Payment Trap

Credit card minimum payments are designed to maximize interest revenue for the card company, not help you pay off debt.

Example: $5,000 Balance at 21.99% APR

  • Minimum payments only: 22+ years, $8,000+ interest
  • $200 fixed payment: 2.5 years, $1,200 interest
  • Savings: 20 years and $6,800+

Strategies to Pay Off Credit Card Debt

  • Pay more than minimum: Even $50 extra helps significantly
  • Balance transfer: Move to 0% APR card (watch transfer fees)
  • Debt consolidation: Lower rate personal loan
  • Stop using the card: Don't add to the balance

Payment Prioritization

If you have multiple cards:

  • Avalanche: Pay highest APR first (saves most money)
  • Snowball: Pay smallest balance first (motivation boost)

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Frequently Asked Questions

Why does it take so long to pay off with minimum payments?

Minimum payments (usually 2% of balance) barely cover interest, leaving most of your payment paying interest, not principal.

What is a good APR for a credit card?

APRs vary widely. Excellent credit: 15-17%, Average credit: 20-23%, Poor credit: 25%+. 0% intro APRs exist for balance transfers.

Should I pay more than the minimum?

Absolutely. Even doubling your minimum payment can cut payoff time in half and save thousands in interest.

How is credit card interest calculated?

Daily: Balance × (APR/365). This compounds daily, which is why credit card debt grows quickly.