Calculate how long it’ll take to pay off a credit card balance and how much interest you’ll pay along the way. Or work backward: pick a payoff date and see what monthly payment gets you there.
Enter your current balance and the card’s APR. Then pick what you want to solve for: either fix your monthly payment to see how many months until you’re debt-free, or fix a target payoff date and see what payment is required. The chart tracks the balance reducing month-by-month, with cumulative interest layered on top.
Credit card APRs typically run 20-25%. That’s 3-4× the rate of a mortgage, 2-3× an auto loan, and roughly double the long-term return of the stock market. Interest compounds daily on most cards. Minimum payments are designed by the issuer to keep you in debt for decades.
The math: a $5,000 balance at 22% APR, paying only the 2% minimum, takes 22+ years to clear and costs $5,800 in interest — more than the original balance.
It runs the loan amortization formula in reverse. You enter your balance and APR, then either fix the monthly payment (and solve for months to payoff) or fix the target months (and solve for the required payment). The calculator splits each payment into interest (balance × monthly rate) and principal (the rest), and tracks how the balance shrinks until it hits zero.
The US average credit card APR in early 2026 is roughly 21–24%, depending on card type. Premium rewards cards often run 24–28%. Store-branded cards can exceed 30%. Anything above 18% is considered high-cost debt by financial planners and should be prioritized over almost any investment opportunity.
Three reasons. (1) The APR is multiples higher than mortgage, auto, or student loan rates — typically 20%+ vs 5–8%. (2) Interest compounds daily on most cards, not monthly. (3) Minimum payments are designed to keep you in debt for decades — paying only the minimum on a $5,000 balance at 22% APR can take 20+ years and cost more in interest than the original balance.
Most issuers require either 1–3% of the balance or a flat $25–$35 minimum, whichever is greater. The catch: the minimum payment barely covers the interest, especially in the first months. On a $10,000 balance at 22% APR, only paying minimums can take 30+ years to clear and roughly triple the original balance in total cost.
Pay the credit card. The math is unambiguous: there is no reliable investment that returns 22% guaranteed, after-tax. A dollar paid against a 22% APR card earns you a guaranteed 22% return. Even the S&P 500 averages 10%. The only exception is capturing a 401(k) employer match — that's usually a 50–100% instant return, which beats any debt rate. After that, hammer the cards.
With multiple cards, the avalanche method pays off the highest-APR card first (mathematically optimal — saves the most interest). The snowball method pays the smallest-balance card first (psychologically optimal — quick wins build momentum). Studies show snowball completion rates are higher in practice. Pick whichever you'll actually finish — the strategy that gets executed beats the optimal strategy that doesn't.
A 0% balance transfer card can save thousands if you can pay off the balance during the promo period (typically 12–21 months). Watch for: (1) the balance transfer fee (usually 3–5% upfront), (2) what the APR jumps to after the promo ends, and (3) any new purchases on the card, which often accrue interest immediately. It's a useful tool but only if you have a hard plan to pay it off before the promo expires.
Credit utilization (balance ÷ credit limit) is the second-largest factor in your FICO score, after payment history. Keeping utilization under 30% per card and under 10% overall is ideal for the highest scores. Carrying balances doesn't "build credit" — paying on time does. The myth that you need to carry a balance for a good score is wrong; it just costs you interest.
Every dollar paid against a 22% APR card is a dollar earning a guaranteed 22% return, after-tax, with no risk. Nothing else in personal finance has that profile. If you have a credit card balance and you’re also investing in taxable accounts, the math says stop investing until the balance is zero.
The HomeCFO Program teaches the priority stack — what dollar goes where, and why — so you don’t leave the obvious wins on the table.
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