Credit Card Debt Payoff Strategy Guide
A credit card payoff calculator shows how long it will take to clear a balance at a given payment and APR, and what payment you need to finish by a target month. It can also compare avalanche vs snowball strategies across multiple cards.
What is Credit Card Payoff Calculator?
The credit card payoff calculator models revolving debt using a monthly periodic rate. It outputs months to payoff, interest paid, and a schedule so you can plan realistic payments and track progress.
How to Use the Credit Card Payoff Calculator
- Enter balance (B) and APR; the tool computes monthly rate
r = APR/12. - Enter a monthly payment (P) to see months to payoff, or enter a target months (N) to solve for P.
- Optionally list multiple cards with balances/APRs to compare avalanche vs snowball payoff sequences.
- Add extra payments and one-off lump sums to see time and interest saved.
- Export an amortization schedule for your records.
Formulas & Methods
- Months given payment P:
N = -ln(1 - r*B/P) / ln(1 + r) - Payment for N months:
P = r*B / (1 - (1 + r)^(-N)) - Total interest:
P*N - B(single balance model) - Strategy: Avalanche sorts by APR descending; Snowball sorts by balance ascending.
Assumptions & limitations
- Assumes fixed APR and no additional charges; real accounts may have promo rates/fees.
- Minimum payments may change with balance; model them explicitly if needed.
Examples
Example A — Time to payoff
B = $7,500, APR = 19.99% -> r ~ 0.1999/12. If P = $300:
N ~ -ln(1 - r*B/P)/ln(1 + r) ~ 31 months; interest ~ $1,800 (approx).
Example B — Payment for 18 months
Same B and APR, N = 18 -> P ~ r*B / (1 - (1 + r)^(-18)) ~ $458.
| Method | Sort Key | Pros | Cons | |---|---|---|---| | Avalanche | APR (high->low) | Lowest interest | Needs discipline | | Snowball | Balance (low->high) | Quick wins | Pays more interest |
Pro Tips & Best Practices
- Automate above-minimum payments to ensure principal falls.
- After clearing a card, roll that payment to the next card (debt snowballing).
- Avoid new charges; track utilization under 30% to help credit scores.
- If overwhelmed, consider 0% balance transfer (watch fees/term).
Related Calculators
FAQ
Q: How long to pay off my balance?
A: Time depends on balance, APR, and payment size. N = -ln(1 - r*B/P) / ln(1 + r) (monthly rate r, payment P).
Q: What payment clears the debt in N months?
A: P = r*B / (1 - (1 + r)^(-N)).
Q: Why does minimum payment keep me in debt?
A: Minimums often scale with balance and barely cover interest, so principal falls very slowly.
Q: Which payoff method is best?
A: Avalanche (highest APR first) saves interest; Snowball (smallest balance first) boosts motivation.
Q: Does closing a card hurt credit?
A: It can raise utilization and reduce age of credit; consider keeping zero-fee cards open.
Compliance note: This article is for information only and not financial advice.
Call to Action
Plug in your balances and target date—see the payment you need and how much interest you will save with avalanche or snowball.