Credit Card Payoff Calculator

How credit card interest works

Credit card interest accrues daily on your outstanding balance and compounds each month. The higher your balance and APR, the more interest you pay.

The monthly balance update:

Each month, interest is added to your balance, then your payment is subtracted.

How to pay off debt faster

• Pay more than the minimum — even a small increase saves months of interest.
• Use the debt avalanche method: attack the highest-APR balance first.
• Or the snowball method: smallest balance first for quick wins.

Compare approaches with our debt snowball guide or see how card interest is calculated.