Credit Card Payoff Calculator
Find out how long it takes to pay off your credit card and how much interest you'll pay
Payoff Time
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Frequently Asked Questions
What is the minimum credit card payment?
Most cards require a minimum payment of 1–2% of the balance or $25–35, whichever is greater. Paying only the minimum on a $5,000 balance at 20% APR could take 27+ years and cost over $7,000 in interest.
How does credit card interest work?
Credit card APR is divided by 365 (daily periodic rate). Interest accrues on your average daily balance. If you pay in full each month, you pay zero interest. If you carry a balance, interest compounds daily.
What is a good credit card APR?
The average credit card APR in 2025 is ~21%. Cards for excellent credit may offer 15–18%. Store cards can reach 25–30%. If you carry a balance, look for cards with low APRs or 0% promotional periods.
Avalanche vs snowball: which debt payoff method is better?
Avalanche (highest rate first) saves more money in interest. Snowball (smallest balance first) provides psychological wins and motivation. Studies show snowball leads to higher completion rates despite costing slightly more.
Does paying more than the minimum really help?
Dramatically. On a $5,000 balance at 20% APR, paying $100/month takes 94 months and $4,311 in interest. Paying $200/month takes 32 months and $1,163 in interest. Double the payment, save 3× the interest.
How Credit Card Interest Works
Credit card APR is applied daily. Your average daily balance × (APR ÷ 365) = daily interest. This compounds throughout the month. If you pay your full statement balance by the due date, you pay zero interest (the grace period).
Average Credit Card APRs (2025)
| Credit Score | Typical APR |
|---|---|
| Excellent (750+) | 15–18% |
| Good (700–749) | 18–22% |
| Fair (650–699) | 22–26% |
| Poor (below 650) | 26–30%+ |
| Store cards (any) | 25–35% |