Credit Card Payoff Calculator

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

Keep in mind that your monthly credit card payment can be any amount between the minimum set by your issuer and your entire balance. You also...

In order to pay off $5,000 in credit card debt within 36 months, you need to pay $181 per month, assuming an APR of 18%. While you would incur $1,519 in interest charges during that time, you could avoid much of this extra cost and pay off your debt faster by using a 0% APR balance transfer credit card.

The average length of a 0% APR balance transfer intro period is 13 months, according to...

The best way to pay off credit card debt is as soon as possible. And you can save both time and money by using a credit card payoff calculator as well as 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 find out.

The more credit card debt you owe and the more balances you have, the more complicated things can get. That's why you need a plan. Below, we'll explain the best ways to pay off credit card debt as quickly and inexpensively as possible, starting with WalletHub's preferred method.

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.

How to Calculate Credit Card Interest Charges

1. Find your credit card's APR

   Your credit card's APR...

To find the interest rate on your credit card, look at your cardmember agreement and your monthly credit card statements. Your interest rate will be there in the form of an annual percentage rate (APR). But as “annual” implies, an APR is the cumulative interest rate for a whole year, which isn't all that helpful for calculating actual interest charges from day to day or month to month.

You can figure your daily interest...

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...

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...