📊 Did You Know?
Average US credit card APR is commonly cited around 23.77% as of Feb 2026. At rates like that, paying just a little extra each month can save thousands in interest over time. (Industry data, Feb 2026)
How to Use This Calculator
- Enter your balance, APR, and monthly payment.
- Add an extra payment to see how much time and interest you save.
- If you have multiple debts, use the multiple-debt tab and pick avalanche vs snowball.
The Formula Explained
The standard amortization-style payment relationship is:
M = P[r(1+r)^n] / [(1+r)^n - 1]For payoff planning, what matters is whether your payment exceeds monthly interest. If it does, principal declines; if it doesn’t, payoff can be impossible without changes.
Tips & What Your Results Mean
Avalanche is usually the mathematically optimal strategy because it attacks the most expensive interest first. Snowball can still be effective if it helps you stick with the plan. The “best” strategy is the one you’ll follow consistently.
Use extra payments carefully: build a small emergency buffer first so you don’t fall back into revolving debt when life happens. Then commit to a realistic extra amount and treat it like a bill.
Frequently Asked Questions
What’s the difference between avalanche and snowball?
Avalanche targets the highest APR first, which typically minimizes total interest. Snowball targets the smallest balance first, which can create faster psychological wins and momentum.
What is the average credit card APR right now?
A commonly cited US average credit card APR is about 23.77% (Feb 2026). High APRs are why extra payments can save so much.
How much can an extra $100/month help?
Often a lot. Extra payments reduce principal faster, which reduces future interest charges. Try toggling extra payment and compare months-to-payoff and total interest.
Why does my payment say “never pays off”?
If your payment is less than or equal to the monthly interest being charged, the balance won’t shrink. Increase the payment or reduce APR to reach payoff.
Should I refinance debt instead of paying it off?
Refinancing can help if you can materially lower APR and avoid large fees. Use this calculator to estimate interest at your current APR vs a new APR before deciding.