Should I use a 0% balance transfer card?

If you can clear the balance during the 0% period (usually 12–21 months) — yes, and factor in the 3–5% transfer fee. If not, you're back to high-interest at the end.

Is paying off the card better than investing?

Almost always. Stock market averages ~10%/year long-term; card APR is 20%+. Paying down debt is a guaranteed 20%+ return.

How is credit-card interest calculated day to day?

Most US issuers use the average daily balance method: each day's balance is summed across the cycle, divided by days, and multiplied by the daily periodic rate (APR ÷ 365). The CARD Act (2009) requires this method to appear on every statement.

What is the average US credit-card APR?

The Federal Reserve G.19 release reports the average APR on accounts assessed interest at roughly 22–23% in 2025 — the highest level since the series began in 1994. High-prime cards routinely exceed 28% in 2026.

Should I use a 0% balance transfer card?

If you can clear the balance during the 0% period (usually 12–21 months) — yes, and factor in the 3–5% transfer fee. If not, you're back to high-interest at the end.

Is paying off the card better than investing?

Almost always. Stock market averages ~10%/year long-term; card APR is 20%+. Paying down debt is a guaranteed 20%+ return.

How is credit-card interest calculated day to day?

Most US issuers use the average daily balance method: each day's balance is summed across the cycle, divided by days, and multiplied by the daily periodic rate (APR ÷ 365). The CARD Act (2009) requires this method to appear on every statement.

What is the average US credit-card APR?

The Federal Reserve G.19 release reports the average APR on accounts assessed interest at roughly 22–23% in 2025 — the highest level since the series began in 1994. High-prime cards routinely exceed 28% in 2026.

Credit Card Payoff Calculator

How long to clear a credit card balance and the true interest cost.

Result

Paid off in

36 months (3.0 yrs)

Total interest paid$2,000.56
Total paid$7,000.56
Starting balance$5,000.00
Effective monthly cost (interest)$55.57

$200.00/mo (your plan)

36 mo · $2,000.56 interest

$400.00/mo (double payment)

Saves $1,188.59 of interest by doubling the payment.

15 mo · $811.97 interest

US average credit-card APR (Fed G.19, 2025)

Highest level since 1994 series began.

~22–23%

Stock market long-term return

Card payoff at 22% APR is a guaranteed beats-the-market 22% return.

~10%/yr

Source: Federal Reserve G.19 Consumer Credit release; CARD Act of 2009 (12 CFR 1026).

Not financial advice — Average-daily-balance approximation. Promotional 0% APR can trigger deferred-interest retroactively. Cash advances and balance transfers usually accrue from day one at higher APRs. Penalty APR (≥29.99%) can apply after a late payment.

How to use this calculator

Enter the current balance on the card.
Type the card's purchase APR (look on your statement).
Set what you can afford each month; results refresh instantly.
Try doubling the payment to see the dramatic time and interest savings.

About this tool

Credit card debt is among the most expensive consumer debt — APRs of 20–28% are common. This calculator shows the brutal math: how long it takes to clear a balance at a fixed monthly payment and how much you give up in interest. Try lowering the payment to see when the math breaks (your payment can't even cover the interest, so the balance grows forever). Then nudge the payment up — even an extra $50/month often shaves years off and saves thousands.

How it works — the formula

Monthly interest = (avg daily balance) × APR / 365 × days in cycle
Min payment = max( floor, %·balance + month's interest + past-due )

US credit-card interest accrues using the average daily balance method (most common), assessed at the daily periodic rate (APR ÷ 365). Minimum payment formulas vary by issuer but are constrained by the CARD Act (2009) to cover at least the period's finance charges plus a small principal slice — typically 1–2% of balance — with a fixed dollar floor (often $25).

Sources: CFPB — Credit CARD Act of 2009 overview · Federal Reserve G.19 Consumer Credit (commercial bank credit-card APR series) · NerdWallet & FRED — average credit card APR series

Worked examples

Example 1

Minimum-payment trap

Inputs:: balance = $5,000, APR = 22%, min = max($25, 2% + interest)
Output:: ~22 years to clear; ~$5,400 of interest paid

Example 2

Doubled minimum

Inputs:: balance = $5,000, APR = 22%, fixed $200/month
Output:: ~33 months to clear; ~$1,536 of interest paid

Example 3

Balance transfer (0% for 18 mo, 3% fee)

Inputs:: balance = $5,000, transfer fee = $150
Output:: Cleared in 18 months at $286/month; $150 fee total — ~$5,250 paid vs $10,400 on the original card

Limitations

Issuer-specific minimum-payment rules vary; this is an average-daily-balance approximation.
Promotional 0% APR offers can trigger deferred-interest clauses that retroactively charge full interest if any balance remains at the end.
Cash advances and balance transfers usually accrue interest from day one (no grace period) at higher APRs.
Late or missed payments can trigger penalty APRs of 29.99% or higher under most cardholder agreements.

Credit-card payoff math is sensitive to issuer-specific terms. This calculator does not provide financial or credit-counseling advice — for free help, contact an NFCC-affiliated nonprofit credit counselor.

Frequently asked

Card minimums (often 1–2% of balance) are barely above the interest charge. Pay only the minimum and a $5,000 balance can take 20+ years to clear and cost $10,000+ in interest.