💳 Credit Card Payoff Calculator
See the true cost of credit card debt. Compare payment strategies and balance transfer options.
Card Info
Payment Strategy
Interest vs Principal
Payoff Progress
APR Impact on Monthly Payment
18.0%
41mo
$2,031
20.0%
42mo
$2,387
22.0%
44mo
$2,791
24.0%
47mo
$3,255
26.0%
49mo
$3,795
Payoff Milestones
Yearly Summary
| Year | Year-End Balance | Interest Paid |
|---|---|---|
| 1 | $4,804.16 | $1,204.16 |
| 2 | $3,317.02 | $912.87 |
| 3 | $1,467.62 | $550.60 |
| 4 | $0.00 | $261.29 |
How Credit Card Payoff Works
Interest Formula
Monthly Interest = Daily Balance × (APR ÷ 365) × Days in Month
Credit card interest is usually calculated daily and compounded monthly.
Minimum Payment
Min Payment = Max( Fixed Fee, Balance × Min Payment % )
Balance Transfer
Transfer Cost = Balance × Fee% + New Interest Savings = Current Total Cost - Transfer Total Cost
Example
• $6,000 balance at 22% APR, 2% minimum payment:
• Minimum payments only: ~27 years, total cost ~$14,000
• $200 fixed payment: ~3.5 years, total cost ~$8,500
• Balance transfer to 0% APR (3% fee): save ~$4,000
❓ FAQ
How is credit card interest calculated?＋
Credit card interest is typically calculated daily: Daily Balance × (APR ÷ 365). Interest compounds monthly. This is why carrying a balance is so expensive.
What is the minimum payment trap?＋
Paying only the minimum (usually 2% of balance) can take decades to pay off. A $6,000 balance at 22% APR takes ~27 years with minimum payments.
How do balance transfers work?＋
You move debt to a new card with lower promotional APR (often 0%). There's usually a 3-5% transfer fee. Savings depend on how quickly you pay it off.
Should I close credit cards after paying them off?＋
Not necessarily. Keeping old accounts open helps your credit history length. Just avoid carrying a balance and paying interest.
How can I lower my credit card APR?＋
Call your issuer and negotiate. If you have good payment history, they may lower your rate. Balance transfers to 0% APR cards are another option.
What is a good credit card APR?＋
The national average is ~20-24%. Below 15% is considered good. The best rates go to those with excellent credit scores (720+).
Do cashback rewards offset interest costs?＋
Typically no. 2% cashback doesn't come close to offsetting 20%+ APR. Rewards only benefit you if you pay the full balance monthly.
How many credit cards should I have?＋
2-3 cards is typical. More cards can help credit utilization but are harder to manage. Focus on paying balances in full rather than collecting cards.