Find out exactly how long it will take to pay off your credit card and how much interest you'll pay. Compare payoff strategies to get out of debt faster.
Credit card details Payoff strategy comparison
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Avg US credit card APR: ~22.8%
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Most cards: 1–3% of balance
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Strategy comparison
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Frequently asked questions
What is a good strategy for paying off credit card debt? ›
Two popular strategies are the avalanche method (pay minimums on all cards, put extra money toward the highest-interest card first — saves the most money) and the snowball method (pay off smallest balance first for psychological momentum). For most people, the avalanche method saves more total interest, while the snowball method can be more motivating.
Why does paying the minimum take so long? ›
Most credit cards calculate the minimum payment as a small percentage of your balance (often 1–3%). As your balance decreases, so does your minimum payment, meaning very little actually goes toward principal in the early stages. At 22% APR, paying only the minimum on an $8,500 balance could take over 30 years and cost more in interest than the original debt.
Should I use a balance transfer card? ›
Balance transfer cards offer a 0% introductory APR for 12–21 months, which can dramatically reduce the cost of paying off debt. You typically pay a 3–5% transfer fee. If you can pay off the balance during the promotional period, a balance transfer can save hundreds to thousands in interest. Be careful not to accumulate new debt on the old card.
How does credit card interest work? ›
Credit card APR is divided by 365 to get a daily periodic rate, which is applied to your average daily balance throughout the billing cycle. This is why carrying even a small balance can be costly — interest compounds daily. You can avoid all interest by paying your statement balance in full each month before the due date.
About this credit card payoff calculator
Our credit card payoff calculator shows you how long it will take to eliminate your balance, how much total interest you will pay, and compares three strategies: your custom payment, minimum payments only, and an accelerated 2-year payoff — so you can see the true cost of each approach.
The true cost of minimum payments
Minimum payments are designed to maximize the interest the card issuer collects. On an average $8,500 balance at 22.9% APR, paying only the minimum (2% of balance) takes approximately 32 years and costs around $10,000 in interest — more than the original balance. Even a modest fixed payment of $250/month reduces this to 4 years and about $3,000 in interest.