Credit Card Payoff Calculator

Card issuers set minimums just above the monthly interest charge, typically the greater of $25 or about 1% of your balance plus that month's interest. On a $5,000 balance at 22% APR, this calculator's first minimum is about $143, of which roughly $51 reduces principal. The balance shrinks so slowly that payoff stretches to nearly 19 years and total interest paid tops $7,900, more than the original balance.

The Federal Reserve's May 2026 G.19 release reported an average APR of 20.94% across all credit card accounts and 22.15% for accounts assessed interest. These are dated national averages. Your statement APR is the correct input for a payoff calculation, and a promotional or penalty APR can differ materially.

The calculator applies your APR monthly (APR / 12 per month). Each month, interest is added to your balance first, then your payment is applied. If your payment only covers the interest charge, the principal never drops. Pay even $20 to $30 more than the minimum each month and the payoff timeline shortens noticeably.

For a single card, the choice is straightforward: pay as much as you can each month. For multiple cards, snowball (smallest balance first) builds momentum faster, while avalanche (highest rate first) minimizes total interest. Use a dedicated debt payoff calculator to compare the two when juggling several balances.

Often yes. A 0% intro APR for 15-21 months means your full payment goes toward principal instead of interest. The math works in your favor if you can pay off the transferred balance before the promo period ends. Watch for the 3-5% transfer fee upfront and the standard rate that kicks in after, and note that new purchases on a balance transfer card usually accrue interest from day one.