Debt Payoff Tools
Credit Card Payoff Calculator
By Josimar Nascimento, founder of CalcPier. Rates sourced from Federal Reserve G.19 and CFPB guidance. Read our methodology.
Enter your balance, APR, and monthly payment. See how long until payoff, total interest, and how adding extra each month changes the timeline.
Card Details
Check your card statement. Average US card APR is 20.94%.
Pay more than the minimum to save on interest.
Months to Pay Off
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Insights
Why Minimum Payments Keep You in Debt
The average credit card APR in the United States was 20.94% in Q2 2026, per Federal Reserve G.19. On a $5,000 balance, that rate costs $87 per month in interest alone. If the minimum payment is $112 — 1% of the balance plus interest — only $25 goes to the principal.
At that pace, paying off $5,000 takes over 15 years and costs more than $4,000 in interest. The minimum payment is designed to be sustainable for the card issuer, not efficient for the borrower.
How Extra Payments Change the Math
Adding to the monthly payment has an outsized effect, because the extra goes entirely to principal. Once the principal drops, the interest charge shrinks, and more of the next payment goes to principal again.
On a $5,000 balance at 22% APR:
- $150/month: About 4 years, roughly $2,100 in interest.
- $200/month: About 2.7 years, roughly $1,400 in interest.
- $250/month: About 2 years, roughly $1,000 in interest.
- $350/month: About 16 months, roughly $600 in interest.
The jump from $150 to $250 saves 2 years and over $1,000 in interest. The jump from $250 to $350 saves another 8 months and $400.
Two Payoff Methods: Avalanche and Snowball
If you have more than one card, the order you pay them in changes the total cost.
Avalanche: Pay the minimum on everything, then throw all extra money at the highest-APR card. This minimizes total interest paid. It is the mathematically optimal method.
Snowball: Pay the minimum on everything, then throw all extra at the smallest balance. This clears accounts faster, which many people find more motivating. It costs slightly more in interest, but studies show the psychological boost keeps people on track longer.
The CFPB and Federal Reserve both note that either method works. The worst outcome is no method at all.
When to Consider Consolidation Instead
If the APR on your cards is above 18% and your credit score is 690 or higher, a debt consolidation loan can replace multiple cards with one fixed payment at a lower rate. On $10,000 of card debt, moving from 22% APR to 12% APR saves roughly $500 per year in interest.
The trade-off: consolidation resets the timeline. A $10,000 loan at 12% over 5 years has a $222 monthly payment. That is lower than the sum of card minimums, but the loan runs 60 months regardless of extra payments. Some loans allow prepayment without penalty; check before signing.
See if a personal loan can cut your card interest
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Frequently asked questions
How long will it take to pay off my credit card?
It depends on the balance, APR, and monthly payment. On a $5,000 balance at 22% APR, paying $150 per month takes about 4 years and costs over $2,000 in interest. Doubling the payment to $300 cuts that to 20 months and roughly $1,100 in interest.
What is the minimum payment trap?
Credit card minimums are usually 1% of the balance plus that month's interest, with a floor around $25. Paying only the minimum means most of the payment goes to interest, and the principal barely moves. A balance at 22% APR paid at the minimum can take 15 to 20 years to clear.
Should I pay off the highest APR card first?
Mathematically yes — that is the avalanche method, and it minimizes total interest paid. The snowball method (smallest balance first) costs slightly more but often works better psychologically, since early wins keep people motivated. Either works if you stick with it.
Is a balance transfer better than paying down the card?
A 0% APR balance transfer can save significant interest if you can pay off the balance within the promo window (usually 12 to 21 months). After the promo ends, the rate resets to the card's normal APR, which is often higher than your original. A 3% transfer fee also applies up front.
Will paying off my cards hurt my credit score?
No — it usually helps. Credit utilization is 30% of your FICO score, and lowering balances improves that ratio. Closing the accounts is different: that reduces your total available credit and can lower your score. Keep the accounts open after paying them off.
What is the average credit card APR in 2026?
The average APR across all US credit card accounts was 20.94% in Q2 2026, per Federal Reserve G.19. Accounts that carry a balance pay slightly more, at 22.15%. Bank-issued cards average 20.94%; retail cards are often higher.
Should I use a personal loan to pay off credit cards?
It can work if the loan APR is meaningfully lower than the card APR and you stop using the cards. Consolidating $10,000 of card debt from 22% APR to 12% APR saves roughly $500 per year in interest. The risk is running the cards back up and ending up with both debts.
Disclaimer: This calculator and the content on this page are for educational purposes only. They do not constitute financial, legal, or tax advice. Rates, loan limits, and eligibility criteria vary by lender, location, and borrower profile. Always consult a licensed financial professional before making borrowing decisions. CalcPier is independent and not affiliated with any lender listed on this page.
