Calculate how long it will take to pay off your credit card debt and how much interest you'll pay. Create a realistic repayment plan with this simple tool.
This calculator helps you determine how long it will take to pay off your credit card debt based on your current balance, interest rate, and monthly payment.
You can also see how much interest you'll pay over the life of the debt and how increasing your monthly payment can save you money and time.
The calculator assumes a fixed interest rate and consistent monthly payments.
Credit card debt can quickly accumulate and become overwhelming if not managed properly. Understanding how interest works and developing a solid repayment strategy is essential for financial health.
Credit card companies typically calculate interest using a daily periodic rate, which is the annual percentage rate (APR) divided by 365 or 360 days. This interest compounds, meaning you pay interest on previously accumulated interest, making it crucial to pay more than the minimum payment whenever possible.
Here are some proven strategies to help you eliminate credit card debt faster:
Making only minimum payments extends your repayment period significantly and increases the total interest paid. Most minimum payments are calculated as a percentage of your balance (typically 1-3%) or a fixed amount (often $25-35), whichever is greater.
Eliminating credit card debt provides numerous benefits:
The time it takes to pay off your credit card depends on three main factors: your current balance, the interest rate, and how much you pay each month. Our calculator uses the standard amortization formula to give you an accurate estimate of your payoff timeline. Generally, making larger payments will significantly reduce your payoff time.
Credit card interest is typically calculated using a daily periodic rate, which is your annual percentage rate (APR) divided by 365. This rate is applied to your average daily balance. Most credit card companies compound interest daily, which means interest is calculated on both your principal balance and previously accrued interest.
Credit card minimum payments are usually calculated as either a percentage of your balance (typically 1-3%) or a fixed amount (often $25-35), whichever is greater. Making only minimum payments will extend your repayment period significantly and increase the total interest you pay over time.
In most cases, paying off high-interest credit card debt before focusing on savings is financially advantageous. The interest rate on credit cards (often 15-25%) is typically much higher than what you can earn from savings accounts or even many investments. However, it's important to maintain an emergency fund while paying down debt.
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Our Credit Card Payoff Calculator helps you visualize your debt repayment journey and make informed decisions about your financial future. By understanding how different payment amounts affect your payoff timeline and total interest paid, you can develop a strategy that works for your budget and goals.