HomeBorrow & ownCredit card payoff

Out of debt, by date.

Your payoff time and total interest depend on the balance, APR, and monthly payment — raise the payment and both drop sharply. Enter your card below to get a payoff date, and add other cards to compare the avalanche and snowball methods.

Debt-free in
2 yrs 7 mo
Total interest: $1,547
Total paid$7,547
Payoff date—
Min-only would take—
Daily interest now$3.70
Multiple cards: avalanche vs snowball

Add your other cards. We'll run both strategies and tell you which finishes sooner and saves more.

CardBalanceAPRMin
$
Avalanche payoff—
Snowball payoff—
Avalanche interest—
Snowball interest—
How card interest works

The Daily Periodic Rate.

Credit card interest isn't computed monthly like a mortgage — it's computed every single day. The issuer divides the APR by 365 to get the Daily Periodic Rate (DPR), then applies it to your average daily balance over the billing cycle. Carry a balance from a prior cycle and you also lose the grace period: every new purchase accrues interest immediately.

Daily interest = balance × (APR ÷ 365)
Cycle interest ≈ avg daily balance × DPR × days in cycle
  • DPR — Daily Periodic Rate, APR ÷ 365
  • Avg daily balance — sum of each day's balance ÷ days in cycle
  • Grace period — ≥21 days between statement and due date (CARD Act, 12 CFR 1026.5)
Worked example

The minimum-payment trap.

Scenario · $6,000 balance, 22.5% APR

Same debt, three approaches.

Daily interest at start. $6,000 × (0.225 ÷ 365) = $3.70/day, or about $112/month before any principal moves.
Minimum-only (2% of balance, $25 floor). Payoff takes 28+ years, total interest ~$14,000+. The first month, only ~$8 retires principal — the rest is interest.
$250/month flat. Payoff in ~2 yrs 7 mo, total interest ~$1,547.
$400/month. Payoff in ~1 yr 5 mo, total interest ~$887. Doubling the payment more than halves the cost.
Cost-of-capital matters less than payoff speed. The same dollars at the same rate, four-times less interest if attacked instead of dragged.
Two strategies

Avalanche vs snowball, side by side.

StrategyHow it worksWins on
AvalanchePay minimums on all cards. Direct every extra dollar at the highest APR card until it's gone, then move to the next-highest.Total interest paid (always lower)
SnowballPay minimums on all cards. Direct every extra dollar at the smallest balance until it's gone, then roll that payment to the next-smallest.Completion rate (per Gal-McShane 2010 study)
When the choice actually matters

If your APRs are within ~5 points of each other, the dollar difference between strategies is small — pick snowball for momentum. If one card is at 29% and another at 12%, avalanche's interest savings are real ($500-$2,000 typical) and worth the patience. The multi-card simulator above runs both and shows the gap for your exact debts.

Common mistakes

Where card payoff goes sideways.

Closing cards after payoff

Closing a card drops your total available credit, which raises utilization on remaining cards and shortens average account age — both hurt FICO. Pay off, then keep the account open with a small recurring charge auto-paid in full each month. Issuer closes inactive accounts after ~12 months, but a single annual charge prevents this.

Deferred-interest store cards

Many retailer cards (Synchrony, Comenity-issued) advertise "no interest if paid in full in 12 months." Miss the deadline by one day and the issuer back-charges interest from day one — at 28-32% APR. This is "deferred interest," not "0% APR." True bank-issued 0% promos under the CARD Act don't do this. Read every promotional disclosure for the words "deferred interest" before signing.

Cash advances start accruing immediately

Cash advances have no grace period and typically carry APRs 3-7 points higher than purchase APRs. ATM cash from your card is one of the most expensive forms of borrowing in personal finance. Treat as last resort.

Methodology

What's behind the calculator.

Assumptions
  • Monthly compounding at APR ÷ 12 for the payoff simulation. Most US cards actually compound daily; the difference is <0.5% over typical payoff windows.
  • Minimum payment = max($25, balance × min %, interest + $1) — matches the typical CARD Act-compliant formula.
  • Multi-card simulator pays minimums on every card each month, then directs the entire "extra" budget at one card per the chosen strategy until that card hits zero.
  • Excludes annual fees, late fees, returned-payment fees, and over-limit fees.
  • This is general information, not personalized financial advice (YMYL). Your specific card terms (deferred interest, penalty APR, two-cycle billing if applicable) override the model.

Sources: Federal Reserve G.19 Consumer Credit (average APR on accounts assessed interest, late 2025); Credit CARD Act of 2009 (Pub.L. 111-24) and Reg Z 12 CFR 1026.5/1026.7 for minimum-payment warnings, grace period, deferred interest restrictions; CFPB Consumer Credit Card Market Report; Gal & McShane, "Bankruptcy Visualized" (Kellogg School / J. Marketing Research, 2010) on snowball completion bias; FICO 8/9/10T weighting of utilization.

Glossary

Card-debt vocabulary.

APR
Annual Percentage Rate — the cost of borrowing, expressed annually. Cards quote separately for purchases, balance transfers, and cash advances.
DPR
Daily Periodic Rate — APR ÷ 365. The rate applied to each day's balance.
Average daily balance
Sum of each day's balance ÷ days in cycle. The base most issuers use to calculate interest.
Grace period
≥21 days between statement and due date. Pay the full statement balance and no purchase interest accrues. CARD Act minimum.
Utilization
Balance ÷ credit limit. Roughly 30% of FICO. Below 30% is good; below 10% optimal.
Avalanche
Highest-APR-first strategy. Mathematically optimal.
Snowball
Smallest-balance-first strategy. Behaviorally effective per Kellogg 2010.
Deferred interest
Promo financing where unpaid balance at promo end is retroactively charged from day one. Common on store cards.
Penalty APR
The (much higher) rate triggered by a late payment. Can apply to existing balance after CARD Act notice rules.
Related

Tools that pair with this one.

LoanConsolidating cards into a personal loan Debt-to-IncomeWhether your card minimums are blocking a mortgage Emergency FundBuild the starter fund before aggressive payoff BudgetFind the extra dollars to throw at the cards Net WorthTrack the liabilities side as cards retire AmortizationFor comparison — installment vs revolving math
FAQ

Credit card payoff questions.

Avalanche (highest APR first) always wins on math — typically saves $200-$2,000 in interest depending on debt mix. Snowball (smallest balance first) wins on completion: a 2010 Kellogg School study by Gal and McShane found snowball-method users measurably more likely to finish. If APRs are within ~5 points, snowball's wins matter more. If 29% vs 12%, avalanche's savings are real and worth the patience.

Most US issuers use the Average Daily Balance method with a Daily Periodic Rate (DPR = APR ÷ 365). Each day's balance × DPR = that day's interest, summed over the cycle. Paying twice in a cycle reduces the average daily balance and the interest. Carrying a balance from prior cycle voids the grace period — new purchases accrue interest from day one.

Per Federal Reserve G.19 for late 2025, the average APR on accounts assessed interest is around 22-23%, near a multi-decade high. Typical ranges: prime (FICO 720+) 18-22%, near-prime 22-27%, subprime 27-32%, store cards 28-34%. Cash-advance APRs are 3-7 points higher and have no grace period.

Minimums barely exceed monthly interest — usually 1-3% of balance. On a $6,000 / 22.5% APR / 2% min, payoff takes 28+ years and costs $14,000+ in interest. The CARD Act of 2009 requires a "Minimum Payment Warning" on every statement showing the 36-month payoff number — read it. The minimum is a profit center, not a payoff plan.

Run the math. Typical BT: 3-5% upfront for 12-21 months at 0% APR. On $6,000 at 22.5% taking 24 months otherwise, you'd pay ~$1,500 — a 4% fee ($240) is a clear win if you finish during the promo. Two traps: miss a payment and the promo APR voids; some store cards use deferred interest (retroactive charge on unpaid balance). Only true 0% APR transfers are safe.

Utilization is ~30% of FICO. Below 30% is good; below 10% optimal. Paying a maxed card from 90% to 20% utilization typically lifts FICO 30-100 points within one statement cycle. Closing the card after payoff usually hurts — total available credit drops, utilization on remaining cards rises. Pay off, but keep the account open with a small recurring charge.

Standard sequence: build a $1,000-$2,000 starter fund first, then attack high-APR cards aggressively, then build the full 3-6 month fund after cards are gone. Without a starter, the next surprise goes back on the card and progress unwinds. Ramsey's Baby Step 1 ($1,000) is the minimum; $2,000-$3,000 in HCOL areas before pivoting.

The time between statement closing and payment due — at least 21 days under the CARD Act. Pay the full statement balance and no purchase interest accrues. Carry any balance and you lose it: every new purchase accrues interest immediately on the next statement until the balance is fully cleared. This is why "paying the minimum" is more expensive than it looks.

Yes — splitting the payment reduces the average daily balance and lowers interest. Savings are modest (3-8% of monthly interest) but real. Bigger win: paying before the statement closing date lowers the reported balance to bureaus, lowers reported utilization, and lifts FICO. Many people optimize for both by paying ~5 days before the statement date.

A DMP through a non-profit credit counselor (NFCC member) negotiates lower APRs (typically 7-12%) for a 3-5 year structured payoff. One monthly payment to the agency, they distribute. Cards usually closed during the plan, hurting FICO short-term. DIY avalanche/snowball is faster if you can self-manage. Avoid for-profit "debt settlement" firms — they tank credit and rarely save money once fees are included.