Credit Cards Payoff Calculator
Plan how fast two credit cards get paid off using the avalanche method and a shared monthly budget.
Example
Card A: $5,000 at 22.99% APR, $50 minimum. Card B: $3,000 at 18.99% APR, $30 minimum. Total monthly budget: $400.
The avalanche method pays both minimums ($80) and sends the remaining $320 to Card A (the higher 22.99% APR) first. You become debt-free in about 2 yrs 1 mo (25 months), paying roughly $1,892 in total interest on $8,000 of balances.
How it works
Enter each card's balance, APR and minimum payment plus your total monthly budget; the calculator pays minimums on both cards and throws every extra dollar at the highest-APR card first, then simulates month by month until both are clear.
Good to know
This calculator models how quickly you can clear two credit cards at once when you commit a single fixed monthly amount to both. You enter each card's balance, APR and minimum payment along with one combined monthly budget, and it simulates the debt-avalanche strategy: minimums are paid on both cards every month, then whatever is left over is concentrated on the card with the higher APR until that card is gone, after which the leftover rolls to the other card. It is aimed at anyone juggling two revolving balances who wants to see, in concrete months and dollars, what their current payment habit actually buys them.
Reach for it when you have some flexibility in how much you pay but are unsure whether your money is going to the right place, or when you want to test how a bigger budget changes the finish line before you commit to it. Because it runs month by month with monthly compounding (APR divided by 12), the payoff time it reports reflects interest piling up while you pay, not a simple balance-divided-by-payment estimate.
To read the output, start with "Debt-free in" for the headline timeline, then check "Total interest" as the real cost of carrying these balances and "Total paid" as the sum of principal plus that interest. The per-card table and the two interest bars show which card drained your budget first and how the interest split between them; the higher-APR card should clear first and, in most setups, accumulate less interest overall because it gets the extra dollars sooner.
- If your budget is below the two minimums combined, the tool refuses to show a payoff time and warns you instead, because the balances would keep growing rather than shrink.
- The result is only as accurate as your inputs, so use the APR on your latest statement, and remember the model assumes no new purchases, fees or APR changes on either card.
Frequently asked questions
Why does the avalanche method put extra money on the higher-APR card?
Interest is charged as a percentage of each balance, so the card with the highest APR grows fastest. Paying it down first minimizes total interest. After minimums are covered on both cards, every extra dollar in your budget goes to the highest-APR card until it is gone, then to the next.
What happens if my budget is below the combined minimum payments?
If your total budget is less than the sum of both minimum payments, the calculator shows a warning instead of a payoff time, because you cannot cover the required minimums and the balances would keep growing. Increase your budget to at least the combined minimums to start making progress.
Is my data uploaded anywhere?
No — this calculator runs entirely in your browser; nothing is uploaded.
Is this financial advice?
No. These are educational estimates — consult a qualified financial professional before making decisions.
People also ask
What is the avalanche method for paying off credit cards?
The avalanche method pays the minimum on every card, then directs all remaining money to the card with the highest interest rate first. Once that card is cleared, the freed-up payment shifts to the next-highest rate, which minimizes the total interest paid over time.
Is the avalanche or snowball method better for two credit cards?
The avalanche method (highest APR first) mathematically results in the least total interest and often a faster overall payoff. The snowball method (smallest balance first) can give earlier psychological wins by clearing a card sooner, but typically costs slightly more in interest; this tool models the avalanche approach.
How is credit card interest calculated each month?
This calculator applies the APR divided by 12 to each card's current balance every month, then adds that interest before payments are applied. Real card issuers usually use a daily periodic rate on an average daily balance, so actual charges can differ slightly from a monthly estimate.
Does paying only the minimum on a credit card ever pay it off?
On a card with no new charges, paying only the minimum can eventually reach zero, but it can take many years and cost a large amount in interest because most of each minimum goes toward interest early on. Paying more than the minimum shortens the timeline considerably.
What APR should I enter for my credit card?
Use the purchase APR shown on your most recent statement, entered as the yearly percentage rate. If your card has separate rates for purchases, cash advances or balance transfers, the rate that matches the balance you are paying down is the most accurate input.
Will using a payoff calculator affect my credit score?
No. The calculator runs entirely in your browser and only uses numbers you type in; it does not connect to any lender or credit bureau and performs no credit check, so it has no effect on your score.
Why does one card show more total interest than the other?
Total interest per card depends on its balance, its APR and how long it stays unpaid. A card that is paid off later, or that carries a higher rate or larger balance, accrues more interest, which is why the avalanche method targets the highest-rate card first to shrink that figure.
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