Manage and pay off multiple credit cards. Compare avalanche vs snowball methods and see which strategy saves you the most money.
| Strategy | Time to Payoff | Total Interest | Total Paid |
|---|---|---|---|
| Avalanche | - | - | - |
| Snowball | - | - | - |
| Savings | - | - | - |
Click "Calculate Payoff Plan" to see your payoff schedule
Click "Calculate Payoff Plan" to see the order
Monthly payment = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1]
P = principal, r = periodic interest rate, n = number of payments.The calculator applies the entered principal or balance, periodic interest rate, repayment term and any supported fees or extra payments. Payment and interest figures depend on compounding frequency, payment timing and which taxes, insurance or charges are included.
Pay off a credit card balance - and learn how much you could pay in interest - with this calculator.Simply type your credit card balance, your credit card’s annual percentage rate (APR) - then, how much you can commit to pay to the account each month and your payoff date, if you would like to see that date. Note: The results here are estimates because each credit account will calculate the payoff using varying daily rates. Also, other details can adjust your outcome - whether your payment lands exactly on your due date each month or you put another new purchase on your account.
Input the information which reflects your credit card account and the repayment you’d like to evaluate.
To use the calculator with enough to Pay off interest thePayment amount must be larger than the interest calculated. If you usetoo small an amountthe total will fail to go down in as expected, and may produce an expected result.
Using the credit card payoff calculator-which charges interest based on the balances remaining each month, and then deducts the amount of payment - you'll be finished paying off both accounts on June 5, 2018
The simple month models calculate a monthly rate by dividing the annual interest rate by 12, and then apply that rate to the loan balance, then they multiply that by the balance and adds it to balance of loan then repeat over month. As Credit card lenders generally use daily average balances or a balance during the current bill for their interest calcualations, a simple 30 day model provides an approximation of this type, and will not precisely mirror.
In terms of the repayment profile of a fixed rate loan, you should reduce both number of payments and overall interest by paying back more money more frequently to shorten repayment. Paying off less will increase your repayment time frame.
For a fixed monthly-rate model, the estimated number of payments can be calculated using the standard loan-payment relationship:
n = −ln(1 − rB/P) ÷ ln(1 + r)
When the APR is expressed as a percentage, a simplified monthly rate is commonly calculated as:
r = APR ÷ 100 ÷ 12
The equation will assume that the same interest rate will be paid throughout the term with the same payment amounts. A real credit card account might charge interest at a daily periodic rate or have other transaction categories, fees, promotional rates, and terms. Any of these can lead to a different resulting payment schedule.
Consider a hypothetical credit card balance of $5,000 with an APR of 24% and a fixed monthly payment of $200.
Using the fixed-rate monthly model:
n = −ln(1 − (0.02 × 5,000 ÷ 200)) ÷ ln(1.02)
The estimated payoff period is approximately 35 months, with the final payment smaller than the regular $200 payment. Under this simplified model, the total amount paid is approximately $6,950, meaning roughly $1,950 represents interest.
This a hypothetical calculation, real life credit card interest and your payoff balance could actually end up being more since credit card companies charge daily interest and may also impose fees or specific account conditions.
The primary outputs are usually the estimated payoff date, the total payments, and the estimated interest. All of these values together demonstrate how the estimated payment amount affects the balances on the card and the APR.
Looking at payment scenarios are fun. If you estimate payoff period based on a monthly repayment plan of $150 (vs $200 vs $300) you can get a real-time sense of how change in payment plan impacts the pay off time and interest estimates.
The annual percentage rate affects the amount of interest in the calculation; assuming the same balance and payment, a higher APR results in greater interest and can take longer to pay off the balance.
For instance, the same account balance, at the same payment amount will accrue less interest on a low APR than on a high APR. Of course the difference is often just Math on how the payment amount and interest are being calculated, along with all of the other factors of the account agreement.
Payment Amount One of the most critical components of the payoff calculation is the payment amount. The amount you send pays any remaining interest first, and then decreases the original balance. As that original balance decreases, with a fixed rate on a loan, the interest segment typically decreases too.
Raising the payment can thus have two effects: accelerating the debt amortization and lowering the total accrued interest during the repayment. The amount of savings depends on the initial balance, the APR, the payment frequency and the account conditions.
A good rough calculator estimate works where it actually fits in. Common assumptions behind a fixed-payment calc might include:
If you keep making new purchase on the card while paying off, the true payoff date can be quite different from the estimate.
A minimum payment typically the smallest sum required according to your cardholder terms for one billing cycle and a payoff strategy addresses a way you can pay off what you owe. Both options vary depending on the issuers and specific terms attached to the account, and may differ with a changing balance.
The purpose of Credit Cards Payoff Calculator: This calculator is better than the assumption to keep paying a specific amount each time instead of using the same minimum rate for the rest of loan’s life time.
It is an estimate generated from the values entered on this page and the calculation method shown in the formula and methodology sections.
The calculator validates the entered values, applies the protected formula shown on the page and then rounds only the displayed result where appropriate.
Use current source values, confirm units and time periods, include every requested cost or measurement, and avoid rounding inputs before the final calculation.
Different calculators may use different assumptions, time periods, rounding rules, reference standards or included costs. Compare the inputs and limitations before comparing answers.
No. It provides an estimate from the entered assumptions. Actual rates, fees, taxes, eligibility rules, policy terms and market performance can change the final outcome.
Recalculate whenever a material input changes, such as a rate, price, balance, measurement, time period, fee, contribution or project dimension.
Enter the expected amount, rate and term, calculate a base case, then increase the rate or shorten the term. Compare the monthly payment and total interest to understand the trade-off between cash flow and borrowing cost.
Contrasting various monthly payment amounts can reveal how a repayment scheme alters the projected date of payoff and the amount of interest paid. In the example below, a hypothetical 5,000 balance, at a 24% APR is calculated against a constant monthly interest rate of 2%, assuming no new purchases or fees.
| Monthly Payment | Estimated Payoff Time | Estimated Total Interest | Estimated Total Paid |
|---|---|---|---|
| $150 | Approximately 56 months | Approximately $3,300 | Approximately $8,300 |
| $200 | Approximately 35 months | Approximately $1,950 | Approximately $6,950 |
| $250 | Approximately 26 months | Approximately $1,430 | Approximately $6,430 |
| $300 | Approximately 21 months | Approximately $1,230 | Approximately $6,230 |
| $400 | Approximately 15 months | Approximately $820 | Approximately $5,820 |
These are for estimation, so don't treat these as a credit card statement, all issuers' actual calculations will differ due to the following as well, daily periodic rates, the timing of payments, account-level interest rates(APRs), fees and policy differences.
A payoff calculation is easiest to evaluate when the starting balance remains the only balance being repaid. New purchases increase the amount owed and may create additional interest depending on the card's terms and grace-period rules.
For a repayment scenario, enter the balance you currently want to eliminate and use a payment amount that reflects your intended repayment plan. If you expect to continue using the card, the calculator's payoff estimate should be treated as a hypothetical scenario rather than a forecast of the actual account balance.
A fixed payment method makes constant monthly payments throughout the life of the loan asides from the lesser last payment due to reduced principal/interest balance at maturity or a lower balance by time payments were made (that portion would exceed normal payment size, yet lesser last payment applied). The interest portion of balance decrease each following payment as the unpaid principal decreases each month in a fixed payments loans.
For instance, a $5,000 balance charged 24 percent interest each year under a simplified monthly model, the interest in the first month could be as close as:
$5,000 × 2% = $100
If the payment is for $300, then about $100 would be allocated to the modeled interest for that month and about $200 would be allocated to pay down the balance. The actual credit card statement allocation can vary as the issuer may use a daily method to determine interest.
The purpose of using the calculator should not be limited to the number of months required to clear it, rather to check potential payment amounts with interest too. What can be usefully compared is, what would be your monthly and total interest.