Credit Card Payoff Calculator
Free credit card payoff calculator. Model avalanche vs snowball strategies across multiple cards, solve the monthly budget for a target payoff date, and quantify interest saved vs minimum payments.
Frequently asked questions
What is the avalanche method vs the snowball method?
Both start with paying the minimum on every card. The difference is where the extra money goes: avalanche targets the card with the highest APR first (mathematically minimizes total interest paid); snowball targets the smallest balance first (produces earlier "wins" and improves stick-with-it rates). This calculator runs whichever strategy you pick against your actual balances and shows the exact difference in interest and payoff time.
Why do credit card minimum payments barely reduce my balance?
The typical minimum is 1–3% of the balance (or a $25–$35 floor, whichever is larger). At 22% APR, a $10,000 balance accrues ~$183 in interest in month one; a 2% minimum is only $200. That leaves just $17 going to principal — the balance barely moves, and minimums shrink as the balance does, stretching payoff to 20+ years. This calculator models exactly that behavior and quantifies how much a higher fixed budget accelerates payoff.
How does the "target term" mode work?
Enter how many months you want to be debt-free (e.g., 36) and the calculator uses bisection search to solve for the monthly budget required to hit that date across your card portfolio, using the strategy you selected. If the solved budget is uncomfortable, lower it and switch back to fixed-budget mode to see how many extra months that costs.
Does the calculator handle rolling minimums (freed payments)?
Yes. Once a card is paid off, its minimum-payment slot is freed up and rolls into the strategy target, which is precisely why avalanche/snowball beat pro-rata allocation. The monthly schedule shows total payment staying flat at your budget until the final month.
What if my budget is less than the sum of minimums?
The calculator flags this in red. Balances will grow, not shrink, because interest exceeds payments. Options: raise the budget above minimums, negotiate a hardship rate reduction with the issuer, look at a consolidation loan (see the Debt Consolidation Calculator), or a 0% balance-transfer offer.
Should I model new charges I might put on the cards during payoff?
This calculator assumes zero new charges — the standard payoff assumption. If you continue using the cards, the balance shown will be too optimistic. The most effective payoff plans pair a fixed budget with pausing card use until each card hits zero.