Credit Card Payoff Calculator
Months
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Total Paid
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Total Interest
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The Cost of Minimum Payments
Tips
- Pay more than the minimum every month. Even an extra $25 makes a meaningful difference over time.
- If you have multiple cards, use the avalanche method — pay minimums on all, then put every extra dollar toward the highest-rate card.
- A 0% APR balance transfer card can give you 12–21 months of interest-free repayment. Factor in the 3–5% transfer fee when comparing.
- Stop using the card while paying it down, or new charges undo your progress.
Frequently Asked Questions
What happens if I only pay the minimum?
Minimum payments are typically 1–3% of your balance or $25 — whichever is greater. On a $5,000 balance at 24% APR, paying only the minimum can take over 20 years and cost more than $7,000 in interest. The minimum is designed to keep you in debt as long as possible.
What is a good APR for a credit card?
Average credit card APRs in 2024 are around 20–24%. Rates below 15% are considered good; 0% intro APR offers exist but expire. If your APR is above 25%, prioritizing payoff or a balance transfer to a lower-rate card can save significant money.
What is a balance transfer and does it help?
A balance transfer moves your debt to a new card, often with a 0% intro APR for 12–21 months. You typically pay a 3–5% transfer fee. If you can pay off the balance during the intro period, a balance transfer is one of the most effective ways to eliminate high-interest credit card debt.
Avalanche vs. snowball — which payoff method is better?
The avalanche method pays the highest-rate card first, minimizing total interest paid. The snowball method pays the smallest balance first, providing psychological wins. Mathematically, avalanche wins. Behaviorally, many people find snowball easier to stick with. Both beat paying minimums.