See exactly how much interest you'll pay on your credit card balance. Compare minimum payments versus larger payments, discover your payoff timeline, and find the fastest strategy to become debt-free.
See how different balances, APRs, and payment amounts affect your total interest and payoff time.
| Scenario | Balance | APR | Monthly Payment | Total Interest | Payoff Time |
|---|---|---|---|---|---|
| Minimum Payments Only | $5,000 | 22% | 2% min ($25 min) | $2,547 | ~15 years |
| Moderate Payment | $5,000 | 22% | $200/mo | $1,073 | ~3.5 years |
| Aggressive Payment | $5,000 | 22% | $400/mo | $463 | ~1.5 years |
| Minimum Payments | $10,000 | 18% | 2% min ($25 min) | $6,941 | ~24 years |
| Moderate Payment | $10,000 | 18% | $300/mo | $3,114 | ~4.5 years |
| Aggressive Payment | $10,000 | 18% | $500/mo | $1,789 | ~2.5 years |
See how different monthly payments impact your total interest and how fast you become debt-free.
| Strategy | Monthly Payment | Total Interest | Payoff Time | Interest Saved |
|---|
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Credit card interest is the cost of borrowing money from your card issuer when you carry a balance from month to month. Unlike many other types of loans, credit card interest compounds daily, which means interest charges accumulate every single day on your outstanding balance.
The key metric is your Annual Percentage Rate (APR). While the rate is quoted annually, credit card companies calculate interest using a daily periodic rate:
For example, if you have a $5,000 balance with a 22% APR, your daily rate is 0.06027% (22% ÷ 365). On the first day, you'd accrue about $3.01 in interest. If you make no payment, that interest is added to the balance, and the next day's interest is calculated on the new, slightly higher balance. This compounding effect is why credit card debt can grow so quickly if only minimum payments are made.
Most credit cards offer a grace period — typically 21–25 days from the end of a billing cycle. If you pay your entire statement balance in full by the due date, you won't be charged any interest on new purchases. However, if you carry any balance forward, the grace period disappears, and interest starts accruing immediately on new purchases as well.
As of 2026, credit card APRs range widely based on your creditworthiness:
The overall national average hovers around 22–28%, which makes carrying a balance one of the most expensive forms of consumer debt.
Credit card companies typically require a minimum payment of 2% of your balance or $25 — whichever is greater. While this keeps your account in good standing, it's a trap that can keep you in debt for decades.
Consider a real-world example using the average US credit card debt of $6,200 per household at a 24% APR:
The difference between minimum payments and a fixed, affordable amount is dramatic. Let's use a $10,000 balance at 18% APR (a common scenario for cardholders with good credit):
By paying just $300/month instead of the minimum, you save nearly $4,000 and become debt-free 19 years sooner.
There are three well-established strategies for paying off credit card debt. Use our calculator to see which one works best for your situation.
List all your credit cards by APR from highest to lowest. Pay the minimum on every card except the one with the highest APR — put every extra dollar toward that card. Once it's paid off, roll that payment to the next highest APR card. This method saves the most money because it targets the most expensive debt first.
List your cards by balance from smallest to largest. Pay minimums on all cards except the smallest balance — throw every extra dollar at it. Once that card is paid off, add its payment to the next smallest balance. This method builds momentum and is proven to help people stay motivated through quick wins.
If you have good credit, you may qualify for a balance transfer credit card with a 0% introductory APR (typically 12–21 months) or a debt consolidation loan with a fixed interest rate. Both can simplify payments and reduce interest — but watch for transfer fees (typically 3–5%) and avoid racking up new debt on the old cards.
This calculator provides estimates based on the inputs you provide. Actual credit card interest charges may vary based on your card issuer's specific calculation methods, payment timing, grace periods, promotional rates, and fees. Always review your credit card agreement for the exact terms. This tool is for educational and planning purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.