Find out exactly when you'll be debt-free.
Use this tool to calculate how long it will take to pay off your credit card balance based on your monthly payment. Visualize your payoff timeline and see how much money you can save on interest by increasing your payments. Once you're out of debt, channel that monthly payment into a high-yield savings account to start building an emergency fund.
Debt Payoff Planner
Calculate your debt-free date and total interest costs.
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How to Use the Credit Card Payoff Calculator
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Enter your current balance
Type in the total amount you currently owe on the credit card. If you have multiple cards, run the calculator separately for each one, or focus on the card with the highest APR first.
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Enter the interest rate (APR)
Find your APR on your most recent monthly statement. The average credit card APR is around 22% to 25%, but rates can range from under 15% on a low-rate card to over 29% on a penalty APR.
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Enter your monthly payment
Type in the fixed amount you plan to pay every month. Try a few different numbers — even $50 more per month can shave years off your payoff timeline.
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Review your debt-free date
The calculator shows how long it will take to pay off the card and how much total interest you'll pay. Adjust the monthly payment to see how quickly you can be debt-free if you commit a little more each month.
Avalanche vs. Snowball: Which Strategy Is Right for You?
If you're carrying balances on multiple cards, the order you pay them off matters. The two most popular approaches are the avalanche method and the snowball method — both work, but they optimize for different things:
The Avalanche Method (best for math)
- Pay minimums on every card except the one with the highest APR
- Throw every extra dollar at the highest-rate card until it's paid off
- Move to the next-highest rate, and repeat
- Mathematically optimal: saves the most money in interest
- Best when you're motivated by numbers, not quick wins
The Snowball Method (best for momentum)
- Pay minimums on every card except the one with the smallest balance
- Throw every extra dollar at the smallest balance until it's gone
- Move to the next-smallest, and repeat
- Costs slightly more in interest, but you knock out cards faster
- Best when you need psychological momentum to stay on track
The honest truth: the difference in total interest paid between the two methods is usually a few hundred dollars over several years. The best strategy is the one you'll actually stick with. If "small win after small win" keeps you going, snowball. If watching the highest-rate card disappear feels good, avalanche. Either way, building a monthly budget first will help you find the extra dollars to throw at the debt.
Frequently Asked Questions
Why is my balance not going down?
If you only pay the minimum due, a large portion of your payment goes toward interest rather than the principal balance. On a $5,000 balance at 22% APR, the minimum payment might be $100 and roughly $90 of that goes to interest in the first month. To make progress, you must pay significantly more than the minimum.
What happens if I miss a payment?
Missing a payment can result in a late fee (typically up to $40) and may trigger a penalty APR, which can raise your interest rate to nearly 30%. A payment that's 30 or more days late will also be reported to the credit bureaus and can drop your credit score by 50 to 100 points.
Does paying off a credit card hurt my credit score?
No, paying off debt usually helps your score by lowering your "credit utilization ratio" — the percentage of your available credit you're using. However, closing the account after you pay it off might slightly lower your score by reducing your total available credit. Keep paid-off cards open and unused if you can.
What's a balance transfer and is it worth it?
A balance transfer moves debt from a high-rate card to a card offering a 0% promotional APR (typically 12 to 21 months). Most cards charge a 3% to 5% transfer fee, so you'll pay $150 to $250 to move a $5,000 balance. It's worth it if you can pay off the entire balance during the promo period — otherwise the regular APR kicks in and you may end up worse off.
What is credit utilization and why does it matter?
Credit utilization is the percentage of your total credit limit you're currently using. If you have $10,000 in total limits and a $3,000 balance, your utilization is 30%. It accounts for roughly 30% of your FICO score. Most experts recommend keeping utilization below 30%, and below 10% if you want a top-tier score.
Should I pay off credit card debt or save first?
Generally, pay off high-interest credit card debt before focusing heavily on saving. Earning 4% in a savings account while paying 22% on a credit card means you're losing 18% per year on every dollar that could have gone to the debt. Keep a small starter emergency fund ($500 to $1,000), then attack the debt aggressively, then build a full 3-to-6 month emergency fund — the savings goal calculator can help you map out how long that will take.
How is the minimum payment calculated?
Most issuers calculate the minimum payment as either a flat amount (often $25 to $35) or a percentage of the balance (typically 1% to 3%) plus that month's interest, whichever is higher. Paying only the minimum on a $5,000 balance at 22% APR can take more than 20 years to pay off and cost $7,000+ in interest.
Will closing a paid-off card hurt my credit?
It can. Closing a card reduces your total available credit (raising your utilization ratio) and, if it's an old account, lowers the average age of your credit history. Both factors can drop your score. The exception: if the card has an annual fee you don't want to keep paying and there's no way to downgrade it, closing may be the right move.
