Credit Card Calculator Estimate payoff timelines, compare strategies, and avoid interest traps — with 2025 APR benchmarks...

Credit Card Calculator

Estimate payoff timelines, compare strategies, and avoid interest traps — with 2025 APR benchmarks and behavioral insights.

Standard Payoff

Minimum Payment

Debt Snowball/Avalanche

Balance Transfer

Balance ($)

APR (%)

Monthly Payment ($)

Balance ($)

APR (%)

Min %

Card 1: Balance ($)

Card 1: APR (%)

Card 2: Balance ($)

Card 2: APR (%)

Total Monthly ($)

Strategy Avalanche (Highest APR First) Snowball (Smallest Balance First)

Current Balance ($)

Current APR (%)

New APR (%)

Intro Period (Mos)

Transfer Fee (%)

Monthly Payment ($)

—

Months to Payoff

$0

Total Interest

$0

Final Payment

$0

Interest Saved

Payoff Timeline

How Credit Card Interest Works

Daily Interest Formula**:

$$ \text{Daily Rate} = \frac{\text{APR}}{365} $$ $$ \text{Interest} = \text{Average Daily Balance} \times \text{Daily Rate} \times \text{Days in Billing Cycle} $$

Example** ($5,000 @ 20.4% APR, 30-day cycle): Daily Rate = 20.4% / 365 = 0.05589% Interest = $5,000 × 0.0005589 × 30 = **$83.84/month** → At $100/mo payment: **$16.16 reduces principal**, $83.84 interest

✅ Pro Tip**: Pay *before* the statement close date to reduce average daily balance.

Credit Card Red Flags

⚠️ Avoid these dangerous traps:

• Deferred interest** — “Same as cash” 12 mos → if $1 remains, retroactive 29.99% on full amount
• Universal default** — Rate jumps if late on *any* credit (now banned, but legacy accounts exist)
• Minimum payment illusion** — $100/mo on $5K @ 20.4% = 7+ years, $2,300 interest
• Balance transfer teaser rates** — 0% for 12 mos → 25.99% after

✅ Smart Payoff Strategies**:

• Avalanche method**: Highest APR first → saves most interest
• Snowball method**: Smallest balance first → psychological wins boost motivation
• Call issuer: Ask for **rate reduction** (cite competing offers)

2025 Credit Card Benchmarks

Type	Avg. APR	$5K @ 150/mo	Min Payment (2%)
Prime Cards	20.4%	41 mo, $1,987 int	30+ yrs, $10,243 int
Store Cards	26.9%	47 mo, $3,012 int	50+ yrs, $18,400 int
Subprime	29.9%	51 mo, $3,650 int	∞ (grows)

📉 Balance Transfer Math** ($5K, 18-mo 0%, 3% fee = $150):

• Current ($22.9%): $300/mo → **18 mo**, **$987 interest**
• Transfer: $300/mo → **17.2 mo**, **$150 fee** → **$837 saved**

How to Use This Calculator

➡️ Standard Payoff

“$5K @ 20.4%, $150/mo — how long to pay off?” (41 months, $1,987 interest)

➡️ Minimum Payment

See the shocking cost of paying only 2% minimum ($10,243 interest on $5K)

➡️ Snowball/Avalanche

Compare payoff time & interest for $3K @ 24.9% + $2K @ 18.9% → avalanche saves $412

➡️ Balance Transfer

Model $5K transfer at 0% for 18 mos + 3% fee — breakeven in 5 months

Note: Uses daily compounding. Assumes no new charges. Minimum payment = max($25, 1–3% of balance + interest).