Faster Card Debt Payoff

Credit Card Payoff Calculator

Working on getting credit card debt-free faster? Enter how much you'd like to pay per month or when you'd like to get debt-free and easily come up with a repayment plan.



Monthly Payment


Months to Debt-Free


Total Interest


Total Paid


71% Balance


29% Interest


How to Use This Calculator?

You may input the current balance, annual percentage rate (APR), and monthly payment for each credit card you possess. Upon entering the balance and APR, you can enter the monthly payment you'd like to make. You can also click the toggle to automatically calculate based on the required minimum monthly payments, which are equal to 1% of principle balance plus interest, and may change every month if balance changes.

Just to the right of the payments field you have the option to input the desired number of months to pay off the debt. This option will show you what your monthly payment should be to achieve your desired debt-free date.

When you click the calculate button, you’ll see several things to help inform your debt payoff strategy, including:
  • The monthly payment
  • The number of months it’ll take to pay off the debt
  • The total interest you’ll pay
  • Total payment amount, including interest and principal

Balance owed
Please input the outstanding debt amount you aim to settle. For instance, when settling credit card debt, you may access the balance by logging into your credit card account or viewing the latest billing statement.
In case you hold a balance on multiple credit cards and intend to merge the balances onto one card, you can list the cumulative balances in this section. However, if you intend to settle the cards individually, calculate each card separately since they may have varying interest rates.

Estimated interest rate
The interest rate signifies the cost of borrowing funds, expressed as a percentage. However, the annual percentage rate (APR) on a loan varies from the interest rate, as it encompasses the amount borrowed and additional fees. On a credit card, the APR is the yearly interest rate. In the calculator, using the estimated APR instead of the interest rate will generate a more accurate monthly payment estimate.

Take note of the possibility of varying interest rates for purchases, balance transfers, and cash advances on your credit card. By reviewing your recent credit card statement, you can identify which rate applies to most of your balance. When you have two large balances on your credit card with varying interest rates, it's advisable to run those balances separately on the calculator.

Additionally, if you miss a credit card payment, a penalty APR may be charged, which could unexpectedly increase your interest fees.
You may find your credit card's APR by logging into your account and examining the card member agreement, terms, and conditions, or the latest billing statement. In the case of a loan, the APR should be stated in the loan documents.

Expected monthly payment
You can use this field to enter the amount you plan to pay each month towards your credit card debt, whether it's just the minimum payment or a higher amount. This will help estimate how long it will take you to pay off your debt. However, if you have a specific deadline or number of payments in mind for paying off your debt, you can leave this field blank.

Desired months to pay off
Input the duration, in months, within which you intend to pay off your debt. If you plan to pay off your credit card debt within the next year, then enter "12 months" in this field to calculate the monthly payment needed to reach your goal. If you’d like to payoff the debt sooner, then choose a more ambitious monthly target and see what your monthly payments should be to achieve them.

How to Pay Off Credit Card Debt?

You may have various options to eliminate your credit card debt, depending on your circumstances. If you don't intend to merge your credit card balances, two strategies you can consider are the debt snowball method and the debt avalanche method.

Snowball method
The debt snowball method involves starting by paying off your smallest debt balance while making the minimum monthly payment on your other debts. After paying off your first debt, you add the amount you were paying on it to the minimum payment on your next smallest debt. By repeating this process, you gradually gain momentum like a snowball rolling down a hill.

While paying off smaller debts more quickly can be motivating, this approach may result in higher interest charges since you're prioritizing the size of the balance over the APR.

Avalanche method
The two popular methods to pay off credit card debt are the debt snowball method and the debt avalanche method. The debt snowball method involves paying off the smallest debt balance first while making minimum payments on everything else. Once that debt is paid off, you move on to the next smallest balance and continue the process. While this method provides motivation by seeing progress quickly, you may end up paying more in interest charges since the method prioritizes the size of the balance over the interest rate.

On the other hand, the debt avalanche method focuses on paying off the debt with the highest interest rate first. This method saves you more money on interest charges in the long run but progress might be slower, especially if your highest interest rate debt consists of larger balances.

Neither method is inherently better than the other, and you should choose the right one based on your goals and preferences. The debt snowball method is suitable if you need quick motivation to keep going, and you prefer to pay off smaller debts first. The debt avalanche method is best if you prioritize saving money on interest charges, but it might not be much higher than what you would achieve with the debt snowball approach, depending on your credit card debt.

How can I pay off large amounts of debt?

If you have a good credit score, consolidating your debt could be a great option to pay it off faster and save money in the process.
Debt consolidation typically involves using a new credit card or personal loan to pay off your existing debt, with the aim of obtaining better terms. Here's a breakdown of how each debt consolidation option works:

  • Balance transfer credit cards: By getting a balance transfer credit card, you can move the balances from your existing cards to a new one. A lot of these cards have a limited-time introductory 0% APR offer, which means you won't have to pay interest on your debt during the promotional period. A few of these cards may require you to pay a fee upfront, which could be as high as 5% of the transfer amount, but the savings on interest could outweigh this cost.
  • Low-interest credit lines: You can use tools like Gauss to lower the APR on your credit card with zero fees to transfer a balance. A lower APR with no costs to achieve save you thousands in the form of interest savings and shaves months off your time to payoff the debt without the upfront costs of a balance transfer card.
No matter which alternative you select, it's crucial to refrain from accumulating debts on your paid-off credit cards. If you do, you may end up in a more challenging financial position.

How Does Credit Card Debt Impact Your Credit Score?
The way you manage your debt is reflected in your credit utilization rate, which represents the percentage of your available credit that you're using. This rate is a significant factor in determining your credit score. Going over your credit limits can significantly harm your score. Consequently, paying off your credit card debt is not only good for your overall financial health but also for improving your credit score.
To monitor your progress, make it a habit to check your credit score regularly. This practice can also help you identify other aspects of your credit history that you can improve to increase your credit score.

How do you calculate interest on a credit card?
To determine your interest charges on your credit card, you will need to know your APR, average daily balance, and the number of days in your billing cycle. Most of this information can be found by logging into your account.
To calculate your interest charges, follow these steps:
  1. Divide your APR by 365, the number of days in a year, to get your daily periodic rate.
  2. Multiply your daily periodic rate by your average daily balance. Your average daily balance is the total balance divided by the number of days in your billing cycle.
  3. Multiply your daily periodic rate by the number of days in your billing cycle to determine your total interest charges for the billing cycle.
It's important to note that if you carry a balance on your credit card, you will likely be charged interest. Credit card companies may have different policies on how long you have to pay for new purchases before they start charging interest, but typically you will have around a month to pay before interest accrues.

How do you calculate a credit card payment?
Your credit card issuer will expect you to make at least the minimum payment each month, which varies among issuers but is usually calculated as the greater of a fixed amount (such as $25 or $35) or:
  • 1% of your current balance, plus
  • Any new interest charges, plus
  • Any late fees or past due amounts if you missed a payment previously.
Alternatively, you have the option to pay either your statement balance or your current balance. Your statement balance reflects your total balance at the end of the previous billing period. After receiving your credit card statement, you typically have a few weeks to pay before the due date. Any purchases made during this time are added to your current balance, which is your total outstanding balance at the moment.

To avoid interest charges, it's essential to pay off either the statement balance or the current balance by the due date.