How to Use Our Credit Card Calculator
Take the first step by gathering two numbers from your latest credit card statement. Then, choose the payoff strategy you want to explore.
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Current Balance: The total amount you currently owe on the credit card.
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Interest Rate (APR): The Annual Percentage Rate your card charges. This is a critical number for calculating your interest costs.
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Choose Your Payoff Goal:
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Pay a Fixed Amount Monthly: Select this option and enter a monthly payment amount you can commit to. Even an extra $50 per month can save you thousands.
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Pay Off in a Target Time: Select this option to set a goal (e.g., 3 years), and the calculator will tell you the monthly payment required to achieve it.
Understanding Your Results: The Minimum Payment Trap
Your results will show you a clear payoff date and the total interest you’ll pay. The most powerful insight comes from comparing your plan to the “minimum payment trap”—the cycle of paying for decades and spending thousands more than you need to.
Example: The True Cost of a $5,000 Balance at 21% APR
By paying a fixed $200/month instead of the minimum, you would:
This is not a typo. The way minimum payments are structured keeps you in debt for as long as possible. Our calculator helps you break that cycle.
Frequently Asked Questions
What is the fastest way to pay off multiple credit cards?
You have two excellent, proven strategies: the Debt Avalanche and the Debt Snowball.
Concrete Example: You have three cards:
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Card A: $1,500 at 24% APR
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Card B: $4,000 at 18% APR
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Card C: $800 at 21% APR
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Debt Avalanche (Saves the most money): You focus all extra payments on the card with the highest interest rate first (Card A at 24%), while paying minimums on the others. Once Card A is paid off, you roll its payment into paying off Card C (21%), and so on. This method is mathematically optimal and saves you the most in interest.
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Debt Snowball (Builds the most motivation): You focus all extra payments on the card with the smallest balance first (Card C at $800), regardless of interest rate. Paying off a card quickly provides a huge psychological boost, motivating you to keep going. Once Card C is paid off, you roll its payment into paying off Card A ($1,500).
The best method is the one you will stick with.
Should I get a balance transfer credit card?
A balance transfer can be a powerful tool. It involves moving your high-interest balance to a new card that offers a 0% introductory APR for a period like 12-21 months.
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Pros: Every dollar you pay goes directly to the principal during the 0% intro period, accelerating your payoff.
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Cons: Most cards charge a one-time balance transfer fee (typically 3%-5% of the amount transferred). If you don’t pay off the balance before the intro period ends, the remaining amount will be charged a high standard APR.
Is it worth it? If you have a $5,000 balance at 21% and pay $300/month, you’ll pay $1,588 in interest. If you transfer it to a 0% card with a 3% fee ($150) and pay it off in 18 months, you save over $1,400. It’s a great option if you have the discipline to pay it off within the promotional window.
What is a debt consolidation loan?
This involves taking out a new, single personal loan to pay off all of your credit cards at once. You then have one fixed monthly payment to the lender, typically at a much lower interest rate than your credit cards.
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Advantage: You get a clear end date for your debt and a fixed interest rate that won’t change. It simplifies your finances from many bills to just one.
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Disadvantage: You must have a good enough credit score to qualify for a loan with a favorable interest rate.
Does closing a credit card after I pay it off hurt my credit score?
It can, so it’s often best to keep the card open. Two major factors in your credit score are your credit utilization ratio (how much of your available credit you’re using) and the average age of your accounts. Closing a card with a zero balance hurts you on both fronts: you lose its available credit (which can increase your utilization ratio) and you shorten your credit history. The best practice is to pay the card to zero and keep it open, perhaps using it for a small, recurring charge you pay off immediately each month to keep it active.
My APR is high. Can I ask my card issuer to lower it?
Yes, and you absolutely should. As of mid-2025, the average credit card APR is over 20%. If you’ve been a good customer (6-12+ months of on-time payments) and your credit score has improved, you have leverage. Call the number on the back of your card, navigate to a customer service representative, and politely ask if you are eligible for an interest rate reduction. The worst they can say is no, and a successful call could save you hundreds or thousands of dollars.
Build Your Financial Health
Creating a debt payoff plan is a huge step toward financial freedom. Keep the momentum going.
