Credit Card Calculator

What is a Credit Card Calculator?

A credit card calculator is a tool that helps you understand how long it will take to pay off credit card debt and how much interest you will pay. This credit card calculator compares different payment strategies to help you save money.

Use our credit card calculator to create a debt payoff plan. The credit card calculator shows you exactly how much time and money you can save by paying more than the minimum payment each month.

The Minimum Payment Trap

Making only minimum payments is one of the most expensive mistakes you can make. Credit card companies set minimum payments low (typically 1-3% of balance) to keep you in debt longer and maximize their interest income.

Example: A $5,000 balance at 18.99% APR with 2% minimum payments takes over 30 years to pay off and costs $8,346 in interest. Paying $150/month instead pays it off in 46 months and costs only $1,876 in interest - saving $6,470!

How Credit Card Interest is Calculated

Credit cards use daily compounding interest. Your APR is divided by 365 to get your daily rate, which is applied to your balance each day. This means interest accumulates faster than simple interest.

Strategies to Pay Off Credit Card Debt

• •Pay More Than Minimum: Even $25-50 extra per month makes a huge difference
• •Stop Using the Card: Don't add new charges while paying down debt
• •Avalanche Method: Pay off highest interest rate cards first
• •Balance Transfer: Move balance to 0% APR card (watch for fees)
• •Debt Consolidation: Personal loan at lower rate may save money