How to Use a Credit Card Payoff Calculator to Get Out of Debt Faster

Paying off credit card debt can feel like an impossible task The high interest rates mean your balance just keeps growing. But using a credit card payoff calculator can give you a roadmap to becoming debt-free

I struggled with credit card debt for years before finally turning to payoff calculators. They gave me the information I needed to pay off my credit cards in just two years Read on to learn how these tools work and how they can help you knock out credit card balances.

What Is a Credit Card Payoff Calculator?

A credit card payoff calculator is an online tool that lets you see how long it will take to pay off your credit card balance. Here’s what you input:

Your current balance
Interest rate
Monthly payment amount

The calculator then estimates

Number of months to pay off the balance
Total interest paid
Amount going to interest vs principal each month

With this information, you can model different payment scenarios. For example, you can see how increasing your monthly payments by $50 or $100 impacts payoff time.

I used to just pay the minimum due on my credit cards each month without realizing how much I was paying in interest. The payoff calculator opened my eyes to how expensive this debt really was.

Popular Credit Card Payoff Calculators

There are lots of great payoff calculators available online for free. Here are some of my favorites:

Bankrate Credit Card Payoff Calculator: Very user-friendly design and easy to understand results. Lets you add multiple credit cards.

Calculator.net Credit Card Payoff Calculator: Allows very detailed inputs including grace periods, fees, and payment due dates. Great for modeling complex situations.

Discover Credit Card Payoff Calculator: Created by the Discover card brand. Simple interface with useful tips and explanations.

NerdWallet Credit Card Payoff Calculator: Charts show a visual payoff schedule. Can compare impact of extra payments.

I’d recommend trying a few calculators to find the layout you like best. They all work on the same principles but may present the information in different ways.

How to Use a Credit Card Payoff Calculator

Using a payoff calculator only takes a few minutes. Follow these steps:

Input your balance. This is the total amount you currently owe. You can enter a single balance or add multiple cards.
Enter the interest rate. This is the APR (annual percentage rate) on each card. Make sure to enter the correct rate for each balance.
Choose a monthly payment. Start with what you pay now (or the minimum due) to see your current trajectory.
View the payoff schedule. This shows monthly payments, how much goes to interest vs principal, and when the balance will be paid off.
Change the monthly payment. Increase the payment amount to see how that impacts the payoff timeline. Don’t forget to consider your budget when setting payment goals.
Consider other scenarios. See what happens if you make an extra principal payment or get a lower interest rate. This can help motivate more aggressive pay down strategies.

I plugged my numbers into the calculators and discovered I was only chipping away at my debt, despite years of minimum payments. The interest charges meant my balances weren’t dropping very fast. But when I increased my payments, the payoff date moved way up. That gave me the motivation I needed to get serious about my debt.

Tips for Using Credit Card Payoff Calculators Successfully

Here are some tips to get the most out of using a credit card payoff calculator:

Update your info regularly. Interest charges and payments constantly change your balance. For the most accurate view, update your inputs every couple months.
Make extra principal payments. The calculators show how effective extra payments are. Put any windfalls like tax refunds or bonuses towards principal to cut interest costs.
Recalibrate if you slip up. We all mess up sometimes. If you take on new debt or miss payments, recalculate so you can course correct.
Try different scenarios. Changing that monthly payment amount lets you set tangible goals to work towards. Find a payment level that fits your budget.
Focus on highest rate cards first. The Debt Avalanche payoff method shown in most calculators tells you to pay off the card with the highest interest rate first. This will save the most on expensive interest charges.
Print your plan. It can be motivation to have a printed payoff schedule on your fridge or bulletin board. Watching those balances drop is very satisfying.

Real Life Example Using a Credit Card Payoff Calculator

Let’s walk through a real life example to see how a payoff calculator works in action:

Sarah has two credit cards:

Card 1 has a $2,500 balance at 19% APR
Card 2 has a $1,200 balance at 25% APR

Sarah has been paying $150 total towards the two cards each month. She inputs her info into a payoff calculator to see how long it will take to pay off the debt.

The calculator shows that at her current payment, it will take over 5 years to pay off the balances! And she’ll pay $1,565 in interest charges.

Sarah tries increasing her monthly payment to $250. Now the payoff timeline drops to 2 years and 3 months. And total interest paid decreases to just $518.

This example shows how even a small increase in monthly payments can make a big difference. The calculator gives Sarah a clear payoff target to work towards.

Get Motivated and Knock Out Your Credit Card Balances

Credit card payoff calculators are powerful tools for understanding exactly what it will take to become debt-free. I wish I had started using them earlier in my debt pay down journey. But once I did, the payoff calculators gave me focus and motivation.

I encourage you to input your credit card information into a few different calculators today. Look at how increasing monthly payments impacts your payoff timeline. Use those calculators whenever you need a reminder of your payoff goal. Becoming debt-free is within your reach!

credit card payoffdiscover credit card payoff calculator

How Bankrate’s credit card payoff calculator works

Don’t let credit card debt rule your life. With our Credit Card Payoff Calculator, it’s easy to get a handle on your debt. Just input your current card balance along with the interest rate and your monthly payments. We’ll help you determine how many months it will take to free yourself from debt. Additionally, you can also tell us how many months you would like for your debt to be resolved. Our dynamic Credit Card Payoff Calculator will help crunch the numbers to give you a clearer picture.

Interested in a balance transfer credit card?

Balance transfer credit cards typically have a 0% introductory rate. This means you could transfer your credit card debt and not have to deal with interest for several months or even a year (depending on the card). While our Credit Card Payoff Calculator assumes an introductory APR of 18 months, some can be as low as 6 months.

If you want to pay off your credit card debt faster, then a balance transfer credit card might be the best way to go about it. In our Credit Card Payoff Calculator, we break down what your monthly payments might look like for an 18 month 0% introductory rate card. In order to make the most of that window of interest-free bliss, you may need to make higher monthly payments. Provided you have the financial wiggle room, a balance transfer card is a fast way to handle that credit card debt. If you want to pay off your credit card debt faster, then a balance transfer credit card might be the best way to go about it. In our Credit Card Payoff Calculator, we break down what your monthly payments might look like for an 18 month 0% introductory rate card. In order to make the most of that window of interest-free bliss, you may need to make higher monthly payments. Provided you have the financial wiggle room, a balance transfer card is a fast way to handle that credit card debt.
Pros:
- They provide an easy way to pay off your balance as soon as possible by taking advantage of the 0% introductory rate.
- You’ll save money during that window of 0% interest.
Cons:
- To make the most of your 0% introductory rate, you might have to make higher monthly payments than you would on a balance spread out over several years.
- Some balance transfer credit cards come with transfer fees that will add to your outstanding balance.
Pros:
- They provide an easy way to pay off your balance as soon as possible by taking advantage of the 0% introductory rate.
- You’ll save money during that window of 0% interest.
Cons:
- To make the most of your 0% introductory rate, you might have to make higher monthly payments than you would on a balance spread out over several years.
- Some balance transfer credit cards come with transfer fees that will add to your outstanding balance.
First and foremost, look for a balance transfer credit card with nine to 18 months. Under federal law, the intro rate must last at least six months. Try to give yourself enough breathing room to pay off your outstanding balance without worrying about interest. You’ll also want to use our Credit Card Balance Transfer Calculator to help you determine if you can pay off that balance before the promotional period ends. While many balance transfer cards offer a large window of 0% introductory rates, the caveat can be high interest once the period ends. It’s also important to limit any additional credit card charges. Our Home Budget Calculator can help with that. This tool – used in conjunction with our Credit Card Payoff Calculator – can paint a clearer picture of where your money is going so you can prioritize your spending and avoid any impulsive card charges. If you follow these tips, you’ll be well on your way to effectively using your balance transfer card to get yourself out of debt. First and foremost, look for a balance transfer credit card with nine to 18 months. Under federal law, the intro rate must last at least six months. Try to give yourself enough breathing room to pay off your outstanding balance without worrying about interest. You’ll also want to use our Credit Card Balance Transfer Calculator to help you determine if you can pay off that balance before the promotional period ends. While many balance transfer cards offer a large window of 0% introductory rates, the caveat can be high interest once the period ends. It’s also important to limit any additional credit card charges. Our Home Budget Calculator can help with that. This tool – used in conjunction with our Credit Card Payoff Calculator – can paint a clearer picture of where your money is going so you can prioritize your spending and avoid any impulsive card charges. If you follow these tips, you’ll be well on your way to effectively using your balance transfer card to get yourself out of debt.

How to Pay Off Your Maxed Out Credit Cards with ZERO Cashflow!!!| @JustJWoodfin

FAQ

How long will it take to pay off $20,000 in credit card debt?

If you only make the minimum payment each month, which is typically around 1% of the balance plus interest, here’s what you can expect: Time to pay off: Approximately 421 months.

Can I pay my Discover card with a credit card?

While the short answer is yes, is it a good idea? It depends on a few factors, including the payment method. There are two ways to pay a credit card with a credit card: a cash advance and a balance transfer.

Does negotiating a credit card payoff hurt your credit?

Debt Settlement Will Most Likely Hurt Your Credit Score Debt settlement is likely to lower your credit score by as much as 100 points or more. But it’s impossible to say exactly how many points your credit score will drop because of settling the debt because the decline depends on multiple factors.

How long to pay off $50,000 in credit card debt?

It will take 47 months to pay off $50,000 with payments of $1,500 per month, assuming the average credit card APR of around 18%. The time it takes to repay a balance depends on how often you make payments, how big your payments are and what the interest rate charged by the lender is.

What is a credit card payoff calculator?

A credit card payoff calculator can help you know when you will pay off your credit card debt so that you can plan your payments with a pre-determined amortization schedule and pay off your debt faster. Why should you pay off your credit card debt? To get on the path to financial security and freedom, you should first get out of debt.

How do I pay off credit card debts each month?

There are multiple ways to approach paying off credit card debts each month. The Credit Cards Payoff Calculator uses a method known as the “Debt Avalanche method.” The calculator also assumes that no further transactions are made on any of the credit cards, minimum payments stay the same, and interest rates are static.

Can a credit card payment calculator help you pay off debts?

A credit card payment calculator like this one can help you estimate how fast you can pay off debts if you pay more than the minimum each month.

Is this credit card payoff calculator accurate?

This credit card payoff calculator is intended solely for general informational and educational purposes. The accuracy of this debt payoff calculator and its applicability to your personal financial circumstances is not guaranteed or warranted.

How long does it take to pay off a credit card?

While our Credit Card Payoff Calculator assumes an introductory APR of 18 months, some can be as low as 6 months. Who should get one? If you want to pay off your credit card debt faster, then a balance transfer credit card might be the best way to go about it.

How does a credit card payoff work?

Each day, you’ll have a new daily balance, and the credit card issuer will calculate the interest on this amount. The daily interest charges are all added up to determine your monthly interest payment, which keeps compounding until you pay your bill in full. How do you calculate your credit card payoff date?