1. What is the Credit Card Payoff Calculator?

This calculator compares how long it will take to pay off multiple credit cards based on their principal balance, monthly payment, and interest rate. It helps you understand which debts will take longest to pay off and how much interest you'll pay overall.

2. How Does the Calculator Work?

The calculator uses the credit card payoff formula:

Where:

• \( T \) — Time to payoff in months
• \( P \) — Principal balance
• \( D \) — Monthly payment amount
• \( R \) — Monthly interest rate (APR ÷ 12)

Explanation: The formula calculates how many months it will take to pay off a credit card debt given fixed monthly payments and interest rate.

3. Importance of Payoff Calculation

Details: Understanding your payoff timeline helps with debt management strategies like the avalanche or snowball methods, and shows the true cost of carrying credit card debt.

4. Using the Calculator

Tips: Enter each card's balance, your planned monthly payment, and APR. The calculator will show payoff time and total interest for each card side-by-side for easy comparison.

5. Frequently Asked Questions (FAQ)

Q1: What if my payment doesn't cover the interest?
A: The calculation only works if payment > (balance × monthly rate). Otherwise, the debt would grow rather than shrink.

Q2: Does this account for minimum payments?
A: No, it assumes fixed payments. Minimum payments often change as balance decreases.

Q3: How accurate is this calculation?
A: Very accurate for fixed payments and rates. Less accurate if payments/rates change.

Q4: Should I pay off highest rate or highest balance first?
A: Mathematically, paying highest rates first (avalanche) saves most interest. Some prefer paying smallest balances first (snowball) for psychological wins.

Q5: Can I see how extra payments would help?
A: Yes! Try increasing monthly payments to see how much faster you'd pay off and how much interest you'd save.