Your Credit Cards
Credit Card 1
How to Use This Calculator
- Add your credit cards with balances, interest rates, and minimum payments
- Set your total monthly payment budget
- Choose between Avalanche (highest interest first) or Snowball (lowest balance first)
- Compare the results to see which method saves more money
- View the payoff order and timeline for each strategy
How Credit Card Payoff Calculator Works
This calculator helps you plan your debt-free journey by comparing different payoff strategies.
Monthly Interest = Balance × (Annual Rate ÷ 12)
Calculates the interest charged each month on your credit card balance.
Principal Payment = Payment - Monthly Interest
The amount of your payment that actually reduces your balance.
New Balance = Previous Balance - Principal Payment
Your remaining balance after applying the principal payment.
Avalanche Method: Pay highest interest rate cards first
This strategy minimizes total interest paid by targeting the most expensive debt first.
Snowball Method: Pay lowest balance cards first
This strategy provides psychological wins by quickly eliminating smaller debts.
Total Interest Saved = Original Interest - New Interest
The difference between paying minimums vs. using a strategic payoff plan.
Time to Payoff = Months until all cards are paid off
Calculated by applying payments strategically until all balances reach zero.
Minimum Payment = Max(2% of balance, $25 minimum)
Most credit cards require at least 2% of the balance or $25, whichever is higher.