Credit Card Payoff Calculator Escape high-interest debt — with payoff timelines, interest savings, and avalanche vs. snow...
Credit Card Payoff Calculator
Escape high-interest debt — with payoff timelines, interest savings, and avalanche vs. snowball strategies.
Formula for Fixed Payments**:
$$n = -\frac{\log\left(1 - \frac{r \cdot B}{P}\right)}{\log(1 + r)}$$
Where: • $B$ = balance • $P$ = monthly payment • $r$ = monthly interest rate (APR ÷ 12)
Example: $5,000 @ 20.4% APR, $250/mo: • Months = **24** • Total paid = $6,000 • Interest = **$1,000**
Minimum Payment Trap**:
- $5,000 @ 20% APR, $150/mo min (3%) → **132 months (11 years)**, **$4,800 interest**
- You pay **96% more** in interest vs. $250/mo fixed
⚠️ Avoid these debt traps:
- Deferred Interest Promos** — “0% for 12 mos” → all interest back-charged if not paid in full
- Universal Default** — APR jumps to 29.99% if late on *any* credit account
- Teaser APR Cliffs** — 0% → 25% after 6 months with no warning
- Dynamic Currency Conversion** — “Pay in USD?” → 3–8% hidden fee
✅ Pro Tips**:
- Call and ask for a **rate reduction** (success rate: 73% — NerdWallet)
- Use bi-weekly payments** (26 half-payments) → 1 extra payment/year
- Automate $5–$20/week via apps like Qapital or Chime
| Strategy | $5K @ 20% | Time | Interest |
|---|---|---|---|
| Minimum ($150) | $150/mo | 11 yrs | $4,800 |
| Fixed ($250) | $250/mo | 24 mo | $802 |
| Bi-Weekly ($125) | $250/mo equiv. | 22 mo | $725 |
| Avalanche vs. Snowball ($12K) | $400/mo | Avalanche: 34 mo | $2,100 |
| Snowball: 38 mo | $3,300 |
📉 Consolidation Breakeven**:
- 0% BT for 18 mos + 3% fee → best if current APR > 22%
- Personal loan @ 14% → best if current APR > 18% and credit score > 680
➡️ Single Card
See how long to pay $5K at $250/mo — with interest total and timeline.
➡️ Multi-Card
Compare avalanche (save max interest) vs. snowball (quick wins) for 2+ cards.
➡️ Consolidation
Model 0% balance transfer vs. personal loan — with fees and break-even.
Note: Assumes fixed APR, no new charges, on-time payments. Minimum payment = max(1%+fee, $25).