Credit Card Calculator
Calculate your credit card payments, payoff time, and total interest costs. See how different payment amounts affect your debt-free date and compare minimum vs. higher payments.
Payoff Summary
Minimum Payment Impact
Payment Schedule
Understanding Credit Card Debt
Credit card debt can be expensive due to high interest rates. Understanding how minimum payments work and the impact of paying more can help you become debt-free faster and save thousands in interest.
How Credit Card Interest Works
Credit Card Interest Calculation
Interest = Balance × (APR/100) × (Days in billing cycle/365)
Daily Interest
Interest accrues daily
Based on average daily balance
Billing Cycle
Typically 25 days
Interest calculated monthly
Minimum Payments
Usually 2-3% of balance
Plus interest and fees
Minimum Payment Trap
Making only minimum payments can keep you in debt for years. For example, a $5,000 balance at 18% APR with 2.5% minimum payments would take over 20 years to pay off and cost more than $7,000 in interest.
Payoff Strategies
Debt Snowball
- Pay minimums on all cards
- Extra payments to smallest balance
- Build momentum with quick wins
- Psychological motivation
Debt Avalanche
- Pay minimums on all cards
- Extra payments to highest interest rate
- Mathematically optimal
- Maximum interest savings
Credit Card Payoff Examples
$5,000 Balance at 18% APR
| Payment Amount | Payoff Time | Total Interest | Total Paid |
|---|---|---|---|
| $125 (Minimum) | 238 months | $19,800 | $24,800 |
| $200 | 50 months | $4,900 | $9,900 |
| $300 | 25 months | $2,200 | $7,200 |
| $500 | 12 months | $700 | $5,700 |
Credit Card Fees
Common Fees
- Late payment fees: $25-$40
- Cash advance fees: 3-5%
- Foreign transaction fees: 1-3%
- Annual fees: $0-$550
Penalty APR
- Triggers: Late payments
- Typical rate: 25-29.99%
- Duration: 6-24 months
- How to avoid: Pay on time
Balance Transfer Strategy
Balance transfers can save money by moving debt to a 0% APR card. However, watch for transfer fees (typically 3-5%) and the promotional period end date. Calculate whether the savings outweigh the fees.
Credit Utilization Ratio
Credit utilization is the ratio of your balances to credit limits. Keep it below 30% for good credit scores. High utilization can hurt your credit score and increase future interest rates.
Key Takeaways for Credit Card Debt
- Minimum payments maximize interest costs and payoff time
- Pay more than minimum to become debt-free faster
- Consider debt consolidation or balance transfers for lower rates
- Avoid new charges while paying down existing debt
- Track your progress and celebrate milestones
- Build an emergency fund to avoid future credit card debt
- Consider debt management plans for overwhelming debt