💳 Credit Card Payoff
Credit Card Payoff Calculator — Avalanche vs Snowball
See exactly when you'll be debt-free. Compare minimum payments, fixed monthly budget, avalanche (highest APR first), and snowball (lowest balance first) strategies across multiple cards.
🏔️ Avalanche Strategy
⛄ Snowball Strategy
💳 Multi-Card Support
📊 Payoff Timeline Chart
Credit Card Payoff Calculator
Add your cards · Choose strategy · See payoff date
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Payoff Strategy
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Balance ($)
Min Pmt ($)
APR %
Avalanche vs Snowball
Avalanche (highest APR first) saves the most money in interest. Snowball (lowest balance first) builds motivation through quick wins. Both beat minimum payments significantly.
Avalanche
Max interest saved
Snowball
Max motivation
Min only
Worst option
Both better
vs min payments
0 mo
Payoff Time
$0
Total Interest
$0
Interest Saved
$0
Monthly Payment
📈 Total Debt Balance Over Time — Strategy Comparison
📋 Per-Card Payoff Detail
| Card | Balance | APR | Min Payment | Interest Paid | Payoff Month |
|---|
Avalanche vs Snowball — Which Wins?
| Strategy | Order | Interest Saved | Best For |
|---|---|---|---|
| 🏔️ Avalanche | Highest APR first | Maximum (mathematically optimal) | People motivated by saving money |
| ⛄ Snowball | Lowest balance first | Good (slightly less than avalanche) | People who need quick wins to stay on track |
| 💰 Fixed Budget | Pro-rata split | Good — depends on allocation | People who want simplicity |
| ⚠️ Minimum Only | No extra payments | None — worst option | Emergency cash-flow situations only |
The Cost of Minimum Payments
| Balance | APR | Min Payment | Payoff Time | Total Interest |
|---|---|---|---|---|
| $1,000 | 20% | $25 | ~60 months | ~$500 |
| $3,000 | 22% | $60 | ~90 months | ~$1,800 |
| $5,000 | 24% | $100 | ~79 months | ~$2,854 |
| $10,000 | 20% | $200 | ~94 months | ~$8,600 |
| $15,000 | 22% | $300 | ~102 months | ~$15,200 |
Frequently Asked Questions
The avalanche method directs all extra money to the card with the highest APR while paying minimums on all others. When the highest-rate card is paid off, that payment "avalanches" to the next highest rate. This is mathematically optimal — it minimizes total interest paid. If you have a mix of 15% and 25% APR cards, paying the 25% card first saves significantly more than any other order.
The snowball method targets the smallest balance first regardless of APR. Paying off a small card quickly gives a psychological win and frees up that minimum payment for the next card. Research shows many people are more likely to stick with debt payoff when they experience early wins. If your cards have similar APRs, the interest difference between snowball and avalanche is small.
The savings are dramatic. On a $5,000 balance at 22% APR: minimum only (~$100/mo) → ~79 months and $2,854 in interest. Double the payment ($200/mo) → ~31 months and ~$1,100 in interest. Triple ($300/mo) → ~21 months and ~$700. Even $50 extra per month can save hundreds in interest and cut years off the payoff timeline. The key is starting early — every dollar extra in the first months saves the most.
Credit card interest is calculated daily: Daily Rate = APR / 365. Each day, the daily rate is applied to your average daily balance. At the end of the billing cycle, these daily interest charges are totaled. If you carry a balance, new purchases start accruing interest immediately (no grace period). If you pay in full each month, you pay zero interest — the most important credit card rule.
It depends on the interest rate. Credit cards at 20%+ APR: always pay these off first — guaranteed 20% return. High-interest personal loans (15%+): pay off first. Student loans / mortgage (5-7%): compare to expected investment return (~7-10%) — investing in a diversified portfolio may beat payoff. If you have an employer 401k match: always contribute enough to get the full match (instant 50-100% return) before paying extra debt.