Credit Cards Payoff Calculator
- Updated
- Formula shown
- Free, no sign-up
Results
Avalanche: debt-free in 29 months with $3,294 of interest; snowball: 29 months with $3,410
| Order | Card | Balance | APR | Paid off | Interest |
|---|---|---|---|---|---|
| 1 | Card 3 | $900 | 27.9% | Month 4 | $42.75 |
| 2 | Card 1 | $4,500 | 24.9% | Month 15 | $897 |
| 3 | Card 2 | $2,200 | 19.9% | Month 20 | $590 |
| 4 | Card 4 | $6,000 | 15.9% | Month 29 | $1,764 |
| Order | Card | Balance | APR | Paid off | Interest |
|---|---|---|---|---|---|
| 1 | Card 3 | $900 | 27.9% | Month 4 | $42.75 |
| 2 | Card 2 | $2,200 | 19.9% | Month 10 | $241 |
| 3 | Card 1 | $4,500 | 24.9% | Month 20 | $1,349 |
| 4 | Card 4 | $6,000 | 15.9% | Month 29 | $1,777 |
Each month every card gets its minimum payment and the rest of the budget goes to the target card. When a card is paid off, its minimum rolls on to the next. Interest is charged monthly at APR ÷ 12; issuers using daily balances will differ slightly.
How to use the credit cards payoff calculator
- For each card, enter the balance, the purchase APR and the current minimum payment from your statement. You can list up to eight cards.
- Enter the total you can put towards the cards each month. It must be at least the sum of the minimum payments.
- Compare the avalanche and snowball plans, then follow the payoff order of the one you choose.
How the avalanche and snowball methods work
Pay every card its minimum
Extra = budget − minimums → all of it to the target card
Avalanche target: highest APR · Snowball target: smallest balance
Card paid off → its minimum joins the extra
Both methods keep your total monthly payment fixed. The only difference is where the extra money goes. The avalanche method sends it to the card with the highest APR, which mathematically minimizes the interest you pay. The snowball method sends it to the smallest balance, so the first card disappears sooner; many people find those early wins help them stick to the plan. When a card is cleared, the money you were paying on it rolls on to the next target, which is why payoffs speed up towards the end.
Worked example
Four cards totalling $13,600, with minimum payments of $320 a month, and a budget of $600:
- Avalanche: debt-free in 29 months with $3,294 of interest. Order: Card 3 (month 4), Card 1 (month 15), Card 2 (month 20), Card 4 (month 29).
- Snowball: also 29 months, with $3,410 of interest. Order: Card 3 (month 4), Card 2 (month 10), Card 1 (month 20), Card 4 (month 29).
- Minimums only (no extra, no roll-over): 6 years 11 months and $10,861 of interest.
Here the avalanche saves $116, while the snowball clears Card 2 (19.9%, $2,200) earlier. Either plan is far cheaper than paying only the minimums.
Effect of the monthly budget
The same four cards at different monthly budgets.
| Monthly budget | Debt-free in | Interest: avalanche | Interest: snowball |
|---|---|---|---|
| $400 | 4 years 2 months | $6,202 | $6,399 |
| $500 | 3 years | $4,272 | $4,423 |
| $600 | 2 years 5 months | $3,294 | $3,410 |
| $800 | 1 year 8 months | $2,289 | $2,364 |
| $1,000 | 1 year 4 months | $1,771 | $1,827 |
Raising the budget does far more than the choice of method: going from $400 to $800 a month cuts the time from 50 to 20 months and saves $3,913 of interest with the avalanche.
Which method should you choose?
- Choose the avalanche if you want the lowest cost and can stay motivated while a large, high-rate balance takes months to clear.
- Choose the snowball if quick wins keep you going. The extra interest is often modest when the APRs are close, as in the example.
- Watch promotional rates. A 0% balance transfer usually belongs last in the order, but plan to clear it before the promotion ends; enter its rate after the promotion if that is sooner than your payoff date.
- Stop new charges on the cards you are paying off. For a single card, use the credit card calculator; to test a consolidation loan instead, try the debt consolidation calculator.
Figures are estimates. Minimum payments are treated as fixed amounts and interest is charged monthly at APR ÷ 12.
Frequently asked questions
What is the difference between the avalanche and snowball methods?
Both pay every minimum and put all extra money on one card. The avalanche targets the highest APR first, which saves the most interest. The snowball targets the smallest balance first, which clears individual cards sooner.
How much does the avalanche method save?
It depends on how different the rates are. With four cards totalling $13,600 (15.9% to 27.9% APR) and a $600 monthly budget, both plans take 29 months, but the avalanche costs $3,294 in interest against $3,410 for the snowball, a saving of about $116.
How much faster is a plan than paying only the minimums?
In the same example, paying only the $320 of fixed minimums takes 83 months and costs about $10,861 in interest. A $600 budget with either method is debt-free in 29 months with about $3,300 to $3,400 of interest.
When does the snowball cost much more?
When the smallest balance has a low rate and a big balance has a high one. With $1,000 at 10% and $8,000 at 25%, a $400 budget costs $2,874 in interest with the avalanche and $3,211 with the snowball.
What budget do I need?
At least the total of your minimum payments, and ideally more. Every extra dollar shortens the plan: for the four example cards, $400 a month takes 50 months while $800 a month takes 20 months.