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How to Use Our Credit Card Payoff Calculator

3 min read

How to Use Our Credit Card Payoff Calculator

Credit card debt can feel overwhelming, but our Credit Card Payoff Calculator shows you exactly how long it will take to become debt-free and how much interest you will pay along the way.

What to Enter

  • Current Balance -- Your total outstanding credit card balance. Check your latest statement for the exact number.
  • Interest Rate (APR) -- Your card's annual percentage rate. This is typically between 15% and 30%. You can find it on your statement or in your card's terms.
  • Monthly Payment -- The amount you plan to pay each month. Try different amounts to see how increasing your payment shortens the timeline.

Reading Your Results

The calculator shows you:

  • Months to Payoff -- How many months until your balance reaches zero at your specified payment amount.
  • Total Interest Paid -- The total interest charges you will accumulate. This number is often eye-opening -- a $5,000 balance at 22% APR with $150 monthly payments costs over $2,000 in interest.
  • Total Amount Paid -- Your balance plus all interest, showing the true cost of carrying the debt.

The Power of Extra Payments

The most valuable feature is comparing scenarios. Try increasing your monthly payment by just $50 or $100 and watch the payoff timeline shrink dramatically. On a $5,000 balance at 22% APR:

  • $150/month: 44 months, $2,073 in interest
  • $200/month: 31 months, $1,395 in interest
  • $300/month: 19 months, $808 in interest

That extra $50 per month saves you 13 months and $678 in interest.

Strategy Tips

Always pay more than the minimum. Minimum payments are designed to keep you in debt as long as possible. Even small amounts above the minimum make a significant difference.

Target the highest-rate card first. If you have multiple cards, use this calculator for each one, then focus extra payments on the highest APR card while paying minimums on the rest.

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