Question 1

How is credit card interest calculated?

Accepted Answer

Credit card interest compounds daily. The daily periodic rate is APR/365. Each day, interest is added to your balance. This calculator uses monthly compounding (APR/12) for simplicity, which closely approximates real payoff timelines.

Question 2

What is the minimum payment?

Accepted Answer

Most issuers require 1-3% of the balance plus interest, or a flat $25-35, whichever is higher. Paying only the minimum can take decades to clear debt. Always pay more if possible.

Question 3

How can I pay off debt faster?

Accepted Answer

Three proven strategies: (1) Pay more than the minimum each month. (2) Use the avalanche method — pay off highest-APR cards first. (3) Consider a balance transfer to a 0% APR card to stop interest accrual.

Question 4

What is a good APR?

Accepted Answer

The average credit card APR is 20-24% as of 2025-2026. Good credit scores may qualify for 15-18%. Balance transfer and 0% intro APR offers are the best way to minimize interest while paying down debt.

💳 Your Credit Card

📊 Payoff Summary

🏆 Strategy Comparison

💵 Your current plan

⚡ Pay $50 more/month

🎯 Fixed 24-month payoff

✨ 0% balance transfer

📅 Amortization Schedule