Credit Cards Payoff Calculator
Plan a payoff strategy for multiple credit cards using the debt avalanche or debt snowball method.
Input Parameters
Results
Debt Avalanche Strategy
The Debt Avalanche method pays minimums on all cards and puts extra money toward the highest APR card first. This minimizes total interest paid. The Debt Snowball pays smallest balance first for psychological wins.
What is the Credit Cards Payoff Calculator?
The Credit Cards Payoff Calculator is an advanced debt-management tool that evaluates multiple revolving balances at once. It helps borrowers design an aggressive payment strategy to escape high-interest consumer debt.
How It Works (Algorithm)
The calculator uses compound interest amortization, but it allows for goal-seeking. It runs the standard payment formula in reverse, allowing you to input a "Target Payoff Date" and mathematically determining the exact fixed monthly payment required to force the balance to zero by that deadline.
$$ PMT = \frac{P \times r}{1 - (1+r)^{-n}} $$
Inverts the standard loan equation to solve for the required Payment ($PMT$).
How to Use It
Enter the total combined balance of your credit cards. Input the average APR. Then, tell the calculator how many months you want to be debt-free by. The tool will calculate the required monthly payment to achieve that exact goal.