Step-by-Step Calculation
- Enter your current balance and APR.
- Choose a fixed monthly payment above the minimum.
- Each month, interest accrues on the remaining balance, then your payment is subtracted.
- Repeat until the balance hits zero — that total number of months is your payoff time.
Worked Example
A $4,000 balance at 22% APR, paying a fixed $200/month:
Month 1: Interest = 4000 × (0.22/12) ≈ $73. New balance after payment: 4000 + 73 − 200 = $3,873.
Repeating this process, the balance clears in approximately 23 months, with total interest paid around $598. Compare that to paying only the $120 minimum: it would take over 4 years and cost more than $1,800 in interest for the same starting balance.
Frequently Asked Questions
What's the difference between the avalanche and snowball methods?
Avalanche pays off the highest-interest card first, saving the most money mathematically. Snowball pays off the smallest balance first, providing psychological wins that keep some people more motivated — both work if you stick with them.
Should I stop using the card while paying it off?
Yes — new charges add to the interest-bearing balance and can undo your payoff progress, effectively resetting the clock on your calculations.
