Credit Card Payoff Calculator

Minimum payments are typically 1-3% of your balance. As your balance shrinks, so does your payment, meaning most of it goes toward interest rather than principal. This creates a cycle where it can take decades to pay off even a modest balance.

The most effective strategy is to pay a fixed amount each month that's well above the minimum. You can also try the avalanche method (pay highest-interest cards first) or the snowball method (pay smallest balances first for motivation). Consider a 0% balance transfer card if you qualify.

Credit card interest is calculated daily on your average daily balance using your APR divided by 365. This means interest compounds on top of interest, making it more expensive than simple interest. Paying your full statement balance each month avoids interest charges entirely.