Credit Cards Payoff Calculator
This calculator creates a cost-efficient payback schedule for multiple credit cards using the Debt Avalanche method. To evaluate the repayment of a single credit card only, or for further information about credit cards and how they work, please visit our credit card calculator.
Monthly Budget
You can payoff your credit cards in 38 months (3 years and 2 months) if you payback $500.00 every month. To payoff, you will need to pay a total of $18,971.20, within which interest is $4,471.24.
Principal vs Interest Distribution
💡 Payoff Strategy (Debt Avalanche):
The best way to payoff your credit cards is to pay back the high interest card first while paying the minimum payments for the other cards. The following are the payback schedules. This schedule assume you do not put new balance to the credit cards.
| Credit Card | Payoff Length | Total Interest | Total Payments | Payment Schedule |
|---|
Your Credit Cards Summary
| Credit card | Balance | Minimum payment | Interest rate |
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Frequently Asked Questions
The debt avalanche method focuses extra payments on the credit card with the highest interest rate first, while maintaining minimum payments on all others. This mathematically minimizes the total interest you pay across all cards.
Why it works: High-interest debt accrues interest fastest. Eliminating it first saves the most money overall.
Credit card interest is typically calculated using the Average Daily Balance method:
Key points:
- Interest is calculated daily and compounds
- Interest charges appear on your statement
- Paying more than minimum reduces future interest
- Different cards may use different methods
Debt Avalanche: Focus on highest interest rate
- Mathematically optimal - saves most money
- Takes longer psychologically (biggest debt might be last)
- Best for: Financially motivated individuals
- Average savings vs snowball: 30-40% less interest
Debt Snowball: Focus on smallest balance
- Provides quick psychological wins
- Costs more in total interest
- Best for: Those needing motivation and wins
- Better for accountability and follow-through
Recommendation: Use avalanche for best results, but choose snowball if you need motivation.
Total interest depends on several factors:
- Total Balance: Larger balances = more interest
- Interest Rates: Higher APR = more interest
- Payoff Speed: Faster payoff = less interest
- Payment Strategy: Avalanche saves vs. snowball
- Monthly Payment: Higher payments = less interest
Example: $14,500 at 18% APR paying $500/month = ~$4,500 interest. Increase to $750/month = ~$2,800 interest saved!
Minimum payments are the smallest amount the card issuer allows you to pay:
Problems with minimums:
- Most goes to interest, not principal
- Takes decades to pay off balance
- Costs thousands in extra interest
- Keeps you in debt longer
Always pay more than minimum if possible!
Strategies to lower APR:
- Call Issuer: Ask for APR reduction (especially with good payment history)
- Balance Transfer: Move to 0% APR card (watch for fees)
- Improve Credit: Higher score = better rates
- Consolidation: Personal loan at lower rate
- Switch Cards: Better rate cards are available
Fact: A 1% APR reduction can save hundreds of dollars in interest!
Generally, no. Here's why:
- Credit Score: Closing cards lowers average age and utilization ratio
- Available Credit: Keep for emergencies
- Rewards: Still earn rewards if unused
- Better Option: Just stop using it
When to close:
- Annual fees you can't get waived
- After repairing credit (then it matters less)
- Not actively tempting you to spend
Prevention strategies after payoff:
- Freeze Cards: Literally freeze credit cards in ice
- Switch to Debit: Use debit or cash only
- Budget: Create and follow spending budget
- Emergency Fund: Build 3-6 months expenses
- Track Spending: Monitor where money goes
- Cut Temptation: Unsubscribe from marketing emails
- Accountability: Tell someone your goal
Remember: It took discipline to pay off debt; maintain it to stay out of debt!