Credit Card Payoff Calculator

USD
Please enter a valid credit card balance.
%
Please enter a valid APR.
USD
Please enter a valid monthly payment.

Frequently Asked Questions

How is credit card interest calculated?

Credit card interest is typically calculated as follows:

  • Daily interest rate = APR รท 365
  • Interest charges are calculated on average daily balance
  • Interest compounds daily in most cases
  • Minimum payments usually cover mostly interest

What is APR?

Annual Percentage Rate (APR) represents:

  • The yearly cost of borrowing
  • Includes interest and certain fees
  • Required by law to be disclosed
  • Can be fixed or variable

How can I pay off my credit card faster?

Several strategies can help accelerate credit card payoff:

  • Pay more than the minimum payment
  • Make bi-weekly payments instead of monthly
  • Consider balance transfer to lower APR card
  • Use windfalls (tax returns, bonuses) for extra payments

What is the minimum payment calculation?

Credit card minimum payments typically include:

  • 1-3% of the outstanding balance
  • Monthly interest charges
  • Any fees incurred
  • Any amount past due