Credit Card Payoff Calculator
See how long it takes to pay off a credit card by paying only the minimum — and how much interest you save by paying more.
Details
Result
Time to Clear
50.0 yrs
Total Paid
$54,420
Total Interest
$53,352
Interest as % of Balance
1067%
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
The minimum-payment trap
A $5,000 balance at 24% APR paying only the minimum (~2% of balance + interest) takes over 20 years to clear and costs roughly $10,000 in interest — double the original debt.
Ways out
- 0% APR balance transfer: 15-21 month promo periods. 3-5% transfer fee, but saves $100s if you pay off during promo.
- Personal loan consolidation: 8-14% fixed, 3-5 year term. Far cheaper than cards.
- Snowball method: pay minimums on all, throw extra at smallest balance first for psychological wins.
- Avalanche method: pay minimums on all, throw extra at highest-APR card first for mathematical wins.
Common questions about Credit Card Payoff
What is the average US credit card APR?+
Around 22-24% for general-purpose cards as of 2026. Store cards often hit 28-32%. Paying only the minimum on a $5,000 balance at 24% APR takes 20+ years and costs ~$10,000 in interest.
Minimum payment vs paying in full?+
Pay in full every month if possible. Paying only the minimum means most of your payment goes to interest and revolves the balance. If you can't pay in full, consider a 0% APR balance transfer card or personal loan consolidation (8-12%).
How does credit card interest compound?+
Most US credit cards use daily compounding. Daily rate = APR / 365. Example: 24% APR ÷ 365 = 0.0658% daily. On a $5,000 balance, that's $3.29/day in interest, $100+/month. Missing the grace period (21-25 days from statement) means new purchases accrue interest from the transaction date, not statement date — a costly subtlety. Always pay at least the statement balance by due date to retain the grace period on future purchases.
Avalanche vs Snowball method — which is better?+
Avalanche (highest APR first) saves the most interest mathematically — typical savings $500-$3000 over payoff period vs Snowball. Snowball (smallest balance first) gives psychological wins through quick full payoffs, improving adherence. Research shows Snowball users are more likely to stick with the plan long-term. Hybrid: tackle one small debt for momentum, then switch to Avalanche for the rest. Pick the method you'll actually follow.
Does closing a paid-off credit card help my credit?+
Usually not. Closing reduces your total credit limit, raising utilization ratio (outstanding ÷ limit) on remaining cards — a common 30-50 point FICO ding. Also shortens average account age over time. Keep old cards open with a small recurring charge (Netflix, gym) and auto-pay in full. Only close if annual fee isn't worth the benefits or you have compulsive spending issues. Never close your oldest card.
What is a balance transfer and when should I use one?+
Moving existing balance to a new card with 0% APR intro period (12-21 months). Typical balance transfer fee: 3%-5% upfront. Example: $10k balance with 24% APR, transfer to 0% for 18 months with 3% fee: $300 fee, saves ~$3,000 in interest if paid off during intro. Critical: pay in full before intro ends, or remaining balance jumps to 22%-29% APR. Don't add new purchases — they typically accrue standard APR immediately.