Credit Card Payoff Calculator
Enter your card details to create a payoff strategy and see how much you can save on interest.
Disclaimer
This calculator is intended for informational and illustrative purposes only and does not constitute financial advice. The calculations are estimates based on the data you provide and may not reflect the exact figures from your financial institution. Factors such as promotional rates, fees, or changes in your payment schedule can affect the outcome. For precise information, please consult your credit card agreement and statements. Always consult with a qualified financial advisor before making financial decisions.
Amortization Schedule
| Month | Payment Date | Interest Paid | Principal Paid | Remaining Balance |
|---|
Understanding Your Credit Card Debt
What is credit card amortization?
Amortization refers to the process of paying off debt over time in regular installments. For credit cards, each monthly payment is split between covering the interest accrued and reducing the principal balance. Our calculator shows you this breakdown in the amortization schedule.
How does APR affect my payoff time?
The Annual Percentage Rate (APR) is the cost of borrowing money. A higher APR means more of your payment goes toward interest each month, extending the time it takes to pay off your balance. Even a small reduction in your APR can save you hundreds or thousands of dollars.
Why is paying more than the minimum important?
Minimum payments are often calculated to be a small percentage of your balance, which means it could take decades to pay off your debt, and you'll pay a massive amount in interest. Paying even a small amount more than the minimum each month can dramatically shorten your payoff timeline.
How to Use This Calculator
- Current Balance: Enter the total amount you currently owe on your credit card.
- Annual Interest Rate (APR %): Find this on your credit card statement and enter it as a percentage (e.g., 19.9).
- Compounding Frequency: Most credit cards compound interest daily. Check your card's terms and select the correct option for the most accurate results.
- Payment Start Date: Select the date you plan to make your first payment.
- Monthly Payment: Enter the total amount you plan to pay each month. Paying more than the minimum will save you significant money on interest.