Credit Card Payoff Calculator
Compare minimum, fixed, and extra payment strategies to see interest saved.
Credit Card Details
Interest Saved With Extra Payments
$110,794
573 months faster · Debt-free in 2y 3m
Payoff Comparison
| Strategy | Monthly | Time | Total Interest |
|---|---|---|---|
| Minimum Payment Only | $160 | 50+ years | $113,249 |
| Fixed Payment | $300 | 3y 4m | $3,797 |
| With Extra Payment | $400 | 2y 3m | $2,455 |
Minimum Payment Trap
Paying only the minimum, it would take 50+ years and cost $113,249 in interest — more than your original balance!
Tips to Pay Off Faster
- Pay more than the minimum — even $50 extra makes a big difference.
- Consider a 0% balance transfer card to stop interest charges.
- The avalanche method (highest APR first) saves the most interest.
The Minimum Payment Trap — Why It Costs Thousands
Credit card companies set minimum payments at just 1–2% of your balance (or $25, whichever is greater). This keeps you in debt for decades. On a $8,000 balance at 24.99% APR, paying only the 2% minimum means you'd take over 30 years to pay it off and spend more than $20,000 in interest — over 2.5 times the original balance. The math is devastating because most of your early payments go to interest, barely touching the principal.
Card issuers are legally required to show how long minimum payments take on your monthly statement (thanks to the CARD Act of 2009), but most people don't look. Our calculator makes the comparison impossible to ignore: minimum payments vs. fixed payments vs. extra payments, side by side.
How Credit Card Interest Actually Works
Your stated APR is divided by 365 to get a daily rate, then applied to your average daily balance — not your statement balance. This means interest compounds daily, not monthly. At 24.99% APR, the daily rate is about 0.0685%, which adds up faster than most people realize. If you carry a $10,000 balance, you're accruing roughly $6.85 in interest every single day.
Three Strategies Compared
| Strategy | How It Works | Best For |
|---|---|---|
| Minimum only | Pay 1–2% of balance each month | Nobody — this is the trap |
| Fixed payment | Pay the same amount every month | Predictable budgeting |
| Fixed + extra | Add any extra amount on top | Fastest debt elimination |
Even an extra $50/month can cut years off your payoff timeline and save thousands in interest. The key insight: every dollar of extra payment goes directly to principal, reducing the balance that accrues daily interest.
Balance Transfer — The 0% APR Escape Hatch
If you qualify, a 0% APR balance transfer card can save significant interest. Many cards offer 15–21 months at 0%, with a one-time transfer fee of 3–5%. On $8,000, a 3% fee is $240 — a fraction of the interest you'd pay otherwise. The catch: you must pay off the entire balance before the promotional period ends, or the remaining balance starts accruing interest at the card's regular rate (often 20%+).
Debt Payoff Accelerators
- Windfalls — Tax refunds, bonuses, and gifts applied directly to credit card debt can shave months off your timeline.
- Expense reduction — Cancel unused subscriptions, negotiate bills, and redirect the savings to debt payments.
- Income boost — Even $200/month from a side gig, applied to debt, dramatically reduces payoff time.
- Negotiate your rate — Call your issuer and ask for a lower APR. Long-standing customers with good payment history often get 2–5 percentage points knocked off.
Frequently Asked Questions
Should I pay off the highest-rate card first or the smallest balance?
The "avalanche" method (highest rate first) saves the most money mathematically. The "snowball" method (smallest balance first) gives quicker wins that keep you motivated. Either approach works far better than paying minimums on everything. Pick the one you'll stick with.
Does paying off credit card debt hurt my credit score?
No — paying down balances typically improves your score. Credit utilization (balances divided by credit limits) accounts for about 30% of your FICO score. Reducing utilization from 80% to 10% can boost your score by 50-100 points. Keep cards open after paying them off to maintain your available credit.