Credit Card Payoff Calculator

You can calculate your monthly credit card payment from multiplying the monthly interest rate by the outstanding balance. Your card's monthly rate can be obtained by dividing its APR by 12 for the number of months in a year. The simplest way to do that is using a credit card calculator.

How to Calculate Your Monthly Credit Card Payment

1. Open a free credit card calculator.
2. Fill in your card's balance and APR.
3. Choose the...

It will take 32 months to pay off $10,000 with payments of $400 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. For example, increasing your payments to $1,600 per month would decrease your payoff timeline to 7 months.

Examples of How...

You can pay off credit card debt fast by focusing on the debts with the highest interest rates first. It's also a good idea to use a credit card payoff calculator to help you plan, and to move your debts to a 0% balance transfer credit card if you have good or excellent credit. You can check your latest credit score for free on WalletHub to see if you might qualify.

Exactly how fast you can pay down your credit card debt depends on how effectively you plan and how much money you can budget toward debt payments each month. Below, you can learn the best ways to pay off credit card debt as quickly and inexpensively as possible, which will also help you minimize negative consequences like excessive interest, late fees and credit score damage.

How to Pay Off Credit Card Debt in 6 Easy Steps

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You should pay off the credit card with the highest interest rate first because you'll save the most money that way. Apply the biggest monthly payment you can manage to the balance with the highest interest rate and pay at least the minimum amount due on your other credit card accounts to avoid credit score damage. Then, move on to the balance with the next highest interest rate and repeat the process with each card until you've...

You can figure out how much interest you will pay on your credit card by dividing the card's APR by 365 and multiplying first by your average daily balance and then by the number of days in the billing period. The interest charges you owe will also be listed on the credit card's monthly statement.

For example, with an 18% APR, your daily rate is 18 ÷ 365 = 0.0493%. If your average daily...

You can easily find the interest rate on your credit card by looking at your monthly credit card statements, your online account, or your cardmember agreement. Your interest rate will be there in the form of an annual percentage rate (APR). As “annual” implies, an APR is the cumulative interest rate for a whole year, but you can use it to calculate your actual interest charges from day to day or month to month.

How...

The best strategy to pay off credit cards is to repay the credit card with the highest APR first because you will minimize interest charges that way. Rank all your credit cards by interest rate and, after paying the minimum amount due for each, put the rest of your debt budget toward the card with the highest APR.

Best Strategy to Pay Off Credit Cards

1. Pay at least the minimum amount due on...

A variable interest rate on a credit card is an interest rate that goes up and down with the index rate it's tied to, which is most often the Prime Rate. The Prime Rate is the interest rate banks give to the most creditworthy borrowers. The Prime Rate goes up and down, too, usually based on adjustments to the Federal Funds Rate, which changes based on the economic climate. Most credit cards today have a variable interest...

The best credit card calculators are the credit card payoff calculator, credit card interest savings calculator, and balance transfer calculator from WalletHub because they are free, easy to use, and capable of finding hidden savings. The key is to select the right type of credit card calculator for the objective at hand.

Best Credit Card Calculator to Use, by Situation

If you want to determine what it will take to become debt free: Use WalletHub's credit card payoff calculator.

This type of credit card...

Yes, you should pay more than the minimum on your credit card. While paying the minimum amount due on time every month will keep your account current, paying more than the minimum each month will save you money on interest, improve your credit score, and reduce the amount of time it will take to pay off your debt.

Why You Should Pay More Than the Minimum on a Credit Card

You'll Pay Less...