Credit Card Interest Calculator

Minimum payments are typically set at 1–3% of your balance — barely above the monthly interest charge. On a $5,000 balance at 22.99%, paying the 2% minimum (~$105) results in over 12 years of payments and more than $11,000 in total interest. The balance shrinks painfully slowly because most of your payment goes to interest, not principal.

The avalanche method targets the highest-APR card first (minimizing total interest — mathematically optimal). The snowball method targets the lowest-balance card first (fastest wins — psychologically motivating). If you struggle with motivation, snowball may work better even though it costs slightly more. If you can stay disciplined, avalanche saves the most money.

Yes, if your card calculates interest using the average daily balance method (most do). Paying half your monthly payment mid-cycle reduces your average daily balance, which slightly reduces the interest charged. This effect is small but compounds over time. Check if your card charges interest on the statement date or daily — daily compounding benefits most from mid-cycle payments.

Generally yes, if you have a plan to pay off the balance before the promotional period ends. A 0% APR balance transfer on $5,000 over 18 months (with a 3% transfer fee = $150) lets you pay down the full balance with zero interest. Without it, 18 months of payments at 22.99% would cost roughly $1,300 in interest. The net saving is significant.

Missing a payment typically triggers a late fee ($30–$40), may trigger a penalty APR (often 29.99%), and damages your credit score. Payments more than 30 days late are reported to credit bureaus and can drop your score significantly. Always pay at least the minimum — even a partial payment is better than none.