How we calculate: Monthly interest = (APR/12) x balance. Payment above interest reduces principal. Minimum payment = sum of all card minimums. The calculator uses standard amortization math — actual results may vary by issuer.
Frequently Asked Questions
The avalanche method targets your highest-interest card first while making minimum payments on all others. Once the highest-APR card is paid off, you roll that payment into the next highest-APR card. This mathematically saves you the most money on interest over time.
The snowball method targets your lowest-balance card first while making minimum payments on everything else. Paying off a card quickly creates a psychological "win" that motivates you to keep going. You then roll that payment into the next lowest balance. You'll pay slightly more interest total, but many people find it easier to stick with.
Pay as much as you can afford above the minimum. Even $50-100 extra per month makes a dramatic difference. Our calculator shows: paying the minimum on a $5,000 balance at 22% APR takes 13 years and costs $4,800 in interest. Paying just $100 extra/month cuts that to 2.5 years and $1,100 in interest.
Yes — if used correctly. Moving a balance from 22% APR to 0% APR for 18 months saves thousands in interest. The key: stop using the card for new purchases, and pay off as much as possible during the 0% window. Watch for balance transfer fees (typically 3-5%) and know what the rate jumps to after the promo period ends.
A balance transfer moves credit card debt to a single card with 0% APR. A debt consolidation loan pays off your cards with a new personal loan — you then make one payment to the loan. Loans typically have fixed terms (2-5 years) and may have lower rates than credit cards if you have good credit. Both reduce interest and simplify payments.
Because most of your minimum payment goes to interest. On a $5,000 balance at 22% APR, your first month's interest alone is ~$96. If your minimum is $150, only ~$54 reduces principal. At that rate, it takes over 13 years to pay off and costs nearly as much in interest as the original balance.
This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on standard amortization calculations. Actual interest charges may vary by card issuer. Balance transfer offers subject to credit approval. Consult a certified financial counselor before making major debt decisions.