Credit Card Payoff Calculator
Use the debt avalanche method to pay off your credit cards faster and save on interest.
Monthly Payment Budget
Credit Cards
Card 1
Card 2
Enter your credit card information to see your payoff strategy
- Set Your Budget: Enter the total amount you can afford to pay toward all credit cards each month
- Add Your Cards: Input the current balance, minimum payment, and APR for each credit card
- Review Strategy: The calculator applies the debt avalanche method, paying minimums on all cards and extra toward the highest APR card
- Track Progress: View your month-by-month payoff schedule and total interest savings
1. Monthly Interest Calculation
Interest = Balance × (APR ÷ 12)
2. Minimum Payment Application
New Balance = (Balance + Interest) - Min Payment
3. Extra Payment Allocation
Extra = Budget - Σ(Min Payments)
Extra payment goes to the card with the highest APR
4. Payoff Priority
Cards are prioritized by APR (highest first), with balance as a tiebreaker (lowest first)
Scenario 1: Two Cards
- • Card A: $5,000 at 18.99% APR, $100 minimum
- • Card B: $3,000 at 24.99% APR, $75 minimum
- • Monthly Budget: $400
- • Strategy: Pay minimums ($175), put extra $225 toward Card B (higher APR)
Scenario 2: Multiple Cards
- • Card A: $8,000 at 15.99% APR, $160 minimum
- • Card B: $4,000 at 22.99% APR, $80 minimum
- • Card C: $2,000 at 19.99% APR, $50 minimum
- • Monthly Budget: $500
- • Strategy: Pay minimums ($290), put extra $210 toward Card B (highest APR)
What is the debt avalanche method?
The debt avalanche method prioritizes paying off debts with the highest interest rates first while making minimum payments on all other debts. This mathematically optimal approach minimizes total interest paid.
Is it better than debt snowball?
Debt avalanche saves more money on interest compared to debt snowball (paying smallest balances first). However, debt snowball may provide more psychological motivation through quick wins.
How long will it take to pay off my cards?
Payoff time depends on your total debt, interest rates, and monthly payment budget. The calculator provides an exact timeline based on your specific situation.
What if I can't afford the minimum payments?
If your budget is less than total minimum payments, contact your credit card companies to discuss hardship programs, payment plans, or consider credit counseling services.