Understanding Credit Card Payoff

Why This Calculation Matters

Credit card debt can feel overwhelming, but understanding exactly how long it will take to pay off and how much interest you'll pay is the first step toward financial freedom. This calculator helps you create a strategic repayment plan that can save you thousands in interest.

How to Use This Calculator

Enter your current credit card balance
Input your annual percentage rate (APR)
Enter your regular monthly payment amount
Add any additional monthly payment you can afford
Click calculate to see your personalized payoff plan

Real Example

A $5,000 balance at 18.9% APR with a $200 monthly payment will take 31 months to pay off and accrue $1,128 in interest. Adding just $50 extra per month reduces the payoff time to 25 months and saves $298 in interest.

Key Concepts

Term	Description
APR	Annual Percentage Rate - the yearly interest rate charged on outstanding balances
Minimum Payment	The smallest amount you must pay each month to keep your account in good standing
Amortization	The process of gradually paying off debt through regular payments

Frequently Asked Questions

How is the payoff time calculated?

We use the standard credit card payoff formula that accounts for your balance, interest rate, and monthly payment. The calculation assumes interest compounds monthly.

Should I pay more than the minimum payment?

Yes! Paying only the minimum extends your repayment period significantly and increases total interest paid. Even small additional payments can make a big difference.

What if I have multiple credit cards?

Calculate each card separately, then consider using either the debt avalanche (highest interest first) or debt snowball (smallest balance first) method to prioritize payments.

Credit Card Payoff Calculator

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Your Payoff Results

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Credit Card Payoff Calculator - Crush Debt Faster

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