Snowballr provides financial education, not investment advice. Verify any advisor on FINRA BrokerCheck.
Snowballr
More
GuidesProtect your moneyScenariosEmbed on your site
Free · No sign-up required
Free · Minimum payment trap · 22% APR math

Credit card calculator

Credit cards charge 18–29% APR. Pay only the minimum and a $5,000 balance takes 28 years to clear, costing $14k in interest. See your true number — and what extra it'd take to escape in 2 years.

Strategy
Choose your payoff method
Your debts
4 debts · Total: $35,800
53% utilization
63% utilization
$200
Applied on top of minimum payments to accelerate the snowball
Debt-free in
3y 11m
Interest paid
$4,815
Total paid back
$40,615
Comparison
Snowball vs Avalanche
❄️ Snowball
Time:3y 11m
Interest:$4,815
🏔️ Avalanche
Time:3y 11m
Interest:$4,730
💡 Avalanche saves you $85 in interest, but snowball gives faster psychological wins.
Payoff order
When each debt disappears
Debt payoff chart with 4 debts. Longest payoff: Student loan in 3y 11mo. Total interest paid across all debts: $4,816.Horizontal bar chart showing months until each debt is fully paid off. Hover for individual debt details.Store credit4moCredit card1y 7moCar loan2y 6moStudent loan3y 11mo0mo9mo19mo28mo38mo47mo

Your action plan

Personalized insights based on your numbers above

A 0% balance transfer card could save thousands

With at least one debt above 18% APR, a 0% balance transfer (typically 12-21 months promo) could save $1,926+ in interest. Watch the 3-5% transfer fee and pay off before the promo ends.

4 debts? Snowball wins on momentum

With 4 debts, snowball method (smallest balance first) creates 4 quick wins to build momentum. Avalanche saves slightly more interest but has higher dropout rates. Behavior beats math.

When debt-free, redirect $200/mo to investing

The discipline that paid off $35,800 is worth more than the debt freedom itself. $200/month invested at 8% for 20 years becomes $1,098+. Turn the snowball into a wealth machine.

The minimum payment trap

Credit card minimums are typically 1–3% of balance (or $25–$35 floor, whichever is greater). At 2% min on a $5,000 balance at 22% APR:

  • Month 1 minimum: $100. Of that, $92 goes to interest, $8 to principal.
  • Year 1: paid ~$1,150 total. Balance dropped ~$45.
  • Full payoff at minimums: 28+ years.
  • Total interest paid: $14,000+ on the original $5,000.

This is by design — issuers profit from minimum payers.

Escape velocity — fixed extra payments

$5k @ 22%Pay/monthPayoffTotal interest
Minimum only$100 (1st mo)28+ yrs$14,000+
Fixed $150/mo$1504.5 yrs$3,043
Fixed $250/mo$2502.2 yrs$1,341
Fixed $500/mo$50011 mo$575
Fixed $1,000/mo$1,0005 mo$268

Three credit card escape tactics

  • 0% balance transfer: move balance to a card with 15–21 month 0% intro APR. Pay it off in the window, save thousands in interest. Watch the 3–5% transfer fee.
  • Personal loan consolidation: swap 22% credit card APR for 10–12% personal loan. Saves interest, fixes the payment, kills the revolving cycle.
  • Avalanche extra payments: highest-APR card first, minimums on the rest, dump everything extra.

Credit Card Calculator FAQ

How is credit card interest calculated?

Most cards use a daily periodic rate (APR ÷ 365) applied to your average daily balance. So at 22% APR, daily rate is 0.0603%. A $5,000 balance accrues $3.01/day = ~$90/month of pure interest. Pay statement balance in full each month and no interest is charged.

What's the minimum payment on a credit card?

Most issuers: greater of (a) 1–3% of balance OR (b) a flat floor of $25–$35. On a $5,000 balance: 2% min = $100/month. As balance falls, min falls too — which is exactly why minimums never get you out.

Does paying more than minimum help my credit score?

Yes, indirectly. Lower balance = lower utilization = higher FICO. Paying down a card from 80% to 30% utilization typically adds 30–80 points. The minimum-vs-extra payment behavior itself isn't reported; balance changes are.

Should I close paid-off credit cards?

Usually no. Closing reduces available credit, raises overall utilization, and shortens average account age — all credit-score negatives. Keep zero-balance cards open. Cancel only if there's a high annual fee you can't get waived.

What's a credit card grace period?

The window between when a statement closes and when payment is due — typically 21–25 days. Pay statement balance in full within the grace period and you owe zero interest, even if you carried a balance during the cycle. Lose the grace period by carrying any balance from month to month.

Should I negotiate my credit card APR?

Yes. Call customer service, ask for a lower rate, cite competing offers and your payment history. Success rate is ~30% if you've been a customer for 12+ months with on-time payments. Typical reduction: 2–5 percentage points.

Related calculators