Find your APR on your card statement or online account.
Must exceed your monthly interest charge to make progress.
Enter your balance, APR, and monthly payment to see your payoff timeline.
How Credit Card Interest Works
Credit card interest is calculated using your Annual Percentage Rate (APR), divided by 12 to get the monthly periodic rate. Each month, the interest charge is the remaining balance multiplied by that monthly rate. Your payment first covers interest, and the rest reduces your principal.
For example: a $5,000 balance at 22% APR has a monthly rate of about 1.833%. That means roughly $91.67 of interest accrues in the first month. A $150 payment would apply only $58.33 toward the actual balance. At that pace, it would take over five years and cost more than $3,500 in interest to pay off the full amount.
The minimum payment trap is real. Credit card companies typically set minimum payments at 1–2% of your balance, which barely keeps pace with interest. Paying only the minimum on a high-rate card can result in repayment timelines measured in decades. This calculator shows why increasing your monthly payment — even by $25 or $50 — compresses the timeline dramatically and saves substantial interest. The Compound Interest Calculator shows the flip side of this math: when compound growth works for you instead of against you.
Strategies to Pay Off Credit Card Debt Faster
There are two widely used approaches to paying down multiple cards:
- Avalanche method: Pay minimums on all cards and put every extra dollar toward the card with the highest interest rate first. This minimizes the total interest you pay over time and is the mathematically optimal approach.
- Snowball method: Pay minimums on all cards and attack the card with the smallest balance first, regardless of interest rate. Paying off individual cards faster provides psychological momentum that many people find helps them stay on track.
- Balance transfer: Moving a high-rate balance to a card with a 0% promotional APR period can eliminate interest temporarily, giving more of your payment to hit the principal. Watch for transfer fees (usually 3–5% of the balance) and what the rate reverts to after the promotional period.
- Fixed extra payment: Pick an amount you can realistically add to the minimum each month and apply it consistently. Automating the payment removes the temptation to skip a month.
Frequently Asked Questions
Where do I find my APR?
Your APR appears on your monthly credit card statement, usually in the "Interest Charge Calculation" section. It is also visible in your online card account under account details or pricing and terms. Note that most cards have multiple rates — a purchase APR, a cash advance APR, and sometimes a penalty APR. Use the purchase APR for this calculator unless you are carrying a cash advance balance.
Does this account for new charges on the card?
No — this calculator assumes you make no new purchases on the card. If you continue charging, your balance will grow and the payoff timeline extends. The most effective payoff strategy is to stop using the card (or use it only for purchases you pay off in full each month) while making fixed payments toward the existing balance.
What is the average credit card APR?
As of early 2025, the average credit card APR in the United States is above 20%, with many store cards and subprime cards exceeding 28–30%. Rates vary significantly across issuers and depend on your credit profile. If you have good credit, a lower-rate personal loan or a balance transfer offer may provide a significantly cheaper path to payoff.
Are there good books on getting out of credit card debt?
Dave Ramsey's The Total Money Makeover is one of the most widely read personal finance books on eliminating consumer debt, including the "debt snowball" method. Ramit Sethi's I Will Teach You to Be Rich takes a complementary data-driven approach that focuses on automating finances and negotiating rates. Both are available through most libraries.
