How long will it take to pay off my credit card?
At the 21.19% average rate, a $5,000 balance takes 2 years, 10 months to pay off at $200 a month and costs $1,655 in interest. At $100 a month it takes 10 years, 3 months and $7,253 in interest; at $500, 1 year and $550. Paying only a typical minimum, 1% of the balance plus interest, takes 19 years, 1 month and costs $7,782.
| Monthly payment | Time to pay off | Total interest |
|---|---|---|
| $100 | 10 years, 3 months | $7,253 |
| $125 | 5 years, 11 months | $3,750 |
| $150 | 4 years, 3 months | $2,612 |
| $200 | 2 years, 10 months | $1,655 |
| $250 | 2 years, 1 month | $1,223 |
| $300 | 1 year, 8 months | $974 |
| $400 | 1 year, 3 months | $700 |
| $500 | 1 year | $550 |
| Minimum only (from $139) | 19 years, 1 month | $7,782 |
How much should I pay to be debt-free in 1, 2 or 3 years?
To pay off $5,000 at 21.19% in 3 years, pay $189 a month; in 2 years, $258; in 1 year, $467. The minimum payment warning on a card statement shows the same 3-year figure for your own balance whenever paying only the minimum would take longer.
| Balance | In 1 year | In 2 years | In 3 years | In 5 years |
|---|---|---|---|---|
| $1,000 | $94 | $52 | $38 | $28 |
| $2,500 | $234 | $129 | $95 | $68 |
| $5,000 | $467 | $258 | $189 | $136 |
| $10,000 | $933 | $515 | $378 | $272 |
| $15,000 | $1,399 | $773 | $567 | $408 |
| $20,000 | $1,865 | $1,030 | $756 | $544 |
What is the difference between the debt snowball and the debt avalanche?
Both pay the minimum on every debt and put everything else in your budget toward one debt at a time. When that debt is paid off, its payment rolls on to the next. The debt avalanche goes after the highest interest rate first, which costs the least interest. The debt snowball goes after the smallest balance first, so whole debts disappear sooner.
Here are three cards, $13,500 in all, paid off with $700 a month both ways. The minimums add up to $405, so $295 a month goes to the target card at first, and more as each card is paid off.
| Card | Balance | APR | Avalanche | Snowball |
|---|---|---|---|---|
| Rewards card | $8,000 | 24.99% | 1st, month 19 | 3rd, month 25 |
| Store card | $1,500 | 21.19% | 2nd, month 21 | 1st, month 5 |
| Everyday card | $4,000 | 17.99% | 3rd, month 24 | 2nd, month 14 |
| Debt-free in | 2 years | 2 years, 1 month | ||
| Total interest | $3,248 | $3,602 | ||
The avalanche saves $355. The snowball clears the store card in 5 months, while the avalanche's first payoff takes 1 year, 7 months. Paying only the minimums, all three would take 25 years, 3 months and cost $21,753 in interest.
Which is better, the debt snowball or the debt avalanche?
The avalanche saves more money; the snowball gives quicker wins. With three cards totaling $13,500 and $700 a month, the avalanche costs $355 less interest, but the snowball pays off its first card in 5 months rather than 1 year, 7 months. In a study of nearly 6,000 people in a debt settlement program, the number of accounts people closed predicted whether they finished better than the dollars they paid (Gal and McShane, Journal of Marketing Research, 2012). If early wins will keep you going, the snowball's extra cost can be worth it.
What is the average credit card interest rate?
21.19% in August 2026, the Federal Reserve's average for all credit card accounts at commercial banks, and 22.36% for accounts that were charged interest. A year earlier it was 21.39%. Its high since the series began in 1994 was 21.76%, in August 2024; in 2021 it averaged 14.6%.
| Period | Average APR |
|---|---|
| 2021 | 14.6% |
| 2022 | 16.26% |
| 2023 | 20.9% |
| 2024 | 21.58% |
| 2025 | 21.22% |
| August 2026 | 21.19% |
Source: Federal Reserve, G.19 Consumer Credit, released October 7, 2026; yearly figures are averages of the quarterly rates. Series TERMCBCCALLNS and TERMCBCCINTNS on FRED.
How is a credit card minimum payment calculated?
Each issuer sets its own formula, found in your card agreement. A common one is 1% of the balance plus that month's interest and fees, with a floor such as $25. On $5,000 at 21.19%, that's about $139 the first month. The minimum shrinks as the balance does, which is why paying only the minimum takes 19 years, 1 month here.
Federal rules from the Credit CARD Act of 2009 require card statements to show how long paying only the minimum would take and what it would cost in all. When that's more than 3 years, the statement also shows the monthly payment that clears the balance in 3 years and how much it would save. Both assume you add no new charges, and so does this calculator. The rules are in Regulation Z.
How the calculator works
- Each month a debt is charged its APR ÷ 12 on the balance, then your payment comes off. Nothing new is charged to the cards.
- With one card, you pay the same amount every month until the balance is gone.
- With several debts, you pay your whole budget every month: today's minimum on each debt, and the rest to one target. The avalanche targets the highest APR, the snowball the smallest balance. When a debt is paid off, its money rolls to the next.
- Paying only the minimum, each month's minimum is that month's interest plus the same share of the balance as today's minimum, never below $25. Leave a minimum blank to estimate it at 1% of the balance plus interest.
- A payment that doesn't cover the interest gets a warning, and a plan that would take more than 50 years counts as never paid off.