Credit Card Payoff Calculator
Enter your balance, APR, and monthly payment to see exactly what your credit card debt is costing you — and how long it will take to pay off. You'll get a Worth It Score from 0–100 based on your current payoff trajectory.
Average US credit card APR: ~22%
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Frequently Asked Questions
How is credit card interest calculated?
Credit card interest is calculated using your daily periodic rate (APR divided by 365) applied to your average daily balance. This is why carrying a balance from month to month is so expensive — interest compounds daily.
Should I pay the minimum payment on my credit card?
No. Minimum payments are designed to keep you in debt as long as possible. On a $5,000 balance at 22% APR, paying only the minimum (~$100/month) could take over 8 years and cost $4,000+ in interest. Always pay as much above the minimum as possible.
What is the avalanche vs snowball method for paying off debt?
The avalanche method pays off the highest-interest debt first — this saves the most money. The snowball method pays off the smallest balance first — this provides psychological wins. Mathematically, avalanche wins every time, but snowball works better if you need motivation.
Does paying off credit cards improve my credit score?
Yes, significantly. Your credit utilization ratio (balance vs limit) makes up 30% of your FICO score. Paying down balances below 30% of your limit can boost your score by 50+ points. Paying off entirely is even better.
Should I use a balance transfer to pay off credit card debt?
Often yes — balance transfer cards with 0% intro APR (usually 12-21 months) can save significant money. The key is: you must pay off the full balance before the promo period ends, and watch for transfer fees (typically 3-5%).