⚠️ Note: This tool provides financial estimates. It is not a substitute for professional advice. Always verify with a certified accountant or advisor.
What is Credit Card Payoff Calculator?
Calculates the time and total interest to pay off credit card debt given a monthly payment.
How it Works
1. Specify 'Card Balance'.
2. Set 'Interest Rate (APR)'.
3. Determine 'Monthly Payment'.
4. See months to freedom.
Step-by-Step Guide
- 1 Balance
- Total owed.
- 2 APR
- Interest rate.
- 3 Payment
- Monthly amount.
- 4 Freedom
- Time to zero.
Example
Input: $5,000, 18%, $200/mo
Result: 32 Months
FAQ
Why calculate this?
Minimum payments often cover mostly interest, leading to decades of debt.
What is APR?
Annual Percentage Rate, the cost of borrowing on the card.
Can I save money?
Yes, paying more than the minimum drastically reduces total interest.
Snowball vs Avalanche?
Avalanche (highest rate first) saves mathematically; Snowball (lowest balance) builds momentum.
Does this affect credit score?
Lowering utilization improves your score.
Conclusion
Credit card debt is designed to keep you paying indefinitely. This tool exposes the true cost of interest. Increasing your payment by even a small amount can shave months off your debt sentence.