Credit Card Payoff Calculator

How to use this credit card payoff calculator

Compare snowball and avalanche payoff plans across one or more credit cards.

Credit Card Payoff Calculator features

Snowball vs. avalanche payoff methods

Both methods roll freed-up minimum payments into the next card after a balance is paid off.

The debt snowball method focuses extra payments on the smallest balance first. It can create quicker early wins and make the payoff plan easier to stick with.

The debt avalanche method focuses extra payments on the highest APR first. It usually reduces total interest paid when all other assumptions are the same.

People who need motivation or who have several small balances often compare snowball first because closing accounts can feel tangible. People optimizing for interest savings usually compare avalanche first because high APR balances are the most expensive to carry.

Neither method helps if new purchases keep adding to the balance. For a realistic plan, enter payments you can sustain every month and use the charts to see whether the payoff timeline still feels workable.

Credit card payoff assumptions

The calculator simulates balances month by month using the entered APRs, minimum payments, extra payment, and selected payoff strategy.

Monthly interest is estimated from APR divided by 12 and applied to the remaining balance. Payments are applied to interest first, then principal.

The estimate assumes APRs and monthly payments stay the same. It does not include new purchases, late fees, balance transfer fees, promotional rate changes, or lender-specific minimum payment rules.

If the minimum payment is too low to cover monthly interest, the balance may not pay down. In that situation, the calculator helps show that a higher payment, lower APR, or other debt strategy may be needed.

Credit card payoff FAQ

Make the payoff plan workable month to month

Enter each current balance, annual percentage rate, and minimum payment from a recent statement. Promotional rates, deferred interest, annual fees, and variable-rate changes can make the real schedule differ. Re-run the plan when a rate or required minimum changes.

The avalanche method sends extra money to the highest rate first and generally minimizes modeled interest. The snowball method targets the smallest balance first and may create earlier account payoffs. Neither method works unless every required minimum is paid on time. Choose the sequence you can follow and automate minimums when possible.

Stop adding new purchases to cards in the payoff plan, or enter a higher balance when testing the next month. New charges, cash advances, and penalty APRs can move the payoff date substantially. Keep a small cash buffer so an ordinary surprise does not return to the card.

If the required payments are already difficult, contact the issuer before missing one. The CFPB lists steps for people who cannot pay a credit card bill, including explaining what is affordable and asking about hardship options. This calculator does not model settlement, delinquency, collections, or credit-score effects.

After an account reaches zero, decide whether to keep it open based on fees, spending control, and your broader credit situation rather than the payoff chart. Closing an account can affect available credit, while keeping it open can create an annual fee or a temptation to reuse it. The calculator intentionally stops at repayment cost and does not predict a credit score.

Review each statement while paying down the balances. Confirm that the minimum arrived, the extra amount went to the intended card, and no subscription or recurring charge restored a balance. Interest can appear after a payoff when it accrued between the statement date and the payment date. Check the following statement before considering the account fully settled.