About this calculator
Two payoff strategies both work, and they optimize for different things. Avalanche — highest interest rate first — mathematically minimizes the interest you pay. Snowball — smallest balance first — clears individual cards sooner, which many people find easier to stick with.
How it works
Both simulations apply your fixed monthly payment to one target at a time while interest accrues on every remaining balance. The difference in total interest between the two is usually modest, so the better method is whichever you will actually follow to the end.
Frequently asked questions
Which payoff method saves the most money?
The avalanche method, where you clear the highest interest rate first, always saves the most in total interest. The snowball method costs slightly more but feels easier to stick with because you close accounts sooner.
How much interest do I pay with minimum payments only?
Paying the 1% minimum typically takes 15 to 20 years and costs you more in interest than you originally borrowed. This calculator shows that figure so you can compare it against paying more each month.
Should I pay off debt or invest first?
Generally, pay off high-interest debt first. Investing at 8% return while paying 22% credit card interest is a guaranteed loss. Once your debt rate is under about 7%, splitting between both becomes reasonable.
Does paying off one card raise my credit score?
Yes, typically. It lowers your credit utilization ratio, which is one of the largest factors in your score. Closing the account outright can hurt slightly by reducing total available credit, so consider keeping it open with a zero balance.
How much extra should I pay each month?
Whatever you can sustain without strain. Even $50 more per month meaningfully shortens the payoff and saves thousands. Consistency matters far more than the size of the extra payment.
Is a balance transfer worth it?
A 0% promotional transfer can pause interest while you pay the balance down, but only if you clear it before the promo ends. The transfer fee, typically 3 to 5%, adds to the cost, and new spending defeats the purpose.