Credit card debt costs far more than the interest rate suggests.
Enter your balance and payment. See total interest, payoff time, and the wealth you sacrifice.
📐 Verified math
⚡ Instant results
🔒 No data stored
$0 Free
Your Parameters
Live
Your Debt
Your Profile
True Total Cost of This Debt
—
calculating…
💡
What This Really Means
Adjust the sliders to see your personalised analysis.
Full Breakdown
Monthly interest (minimum)
—
Payoff time
—
Total interest paid
—
Wealth comparison
—
Wealth lost to delay
—
True total cost
—
Common Questions
What is the avalanche method?
+
Pay minimums on all cards, throw every extra dollar at the highest-APR card first. Mathematically optimal — saves the most interest. See Tool 12 for a full comparison.
Should I pay off debt before investing?
+
Generally yes if the APR exceeds your expected investment return. Credit card debt at 20%+ APR is a guaranteed -20% return on every dollar that stays unpaid.
Download Your Full Report
Get your personalized analysis as a formatted PDF — your exact numbers, projections, and action steps.
Disclaimer: For educational purposes only. Not financial advice. Projections use historical averages and are not guaranteed. Individual results will vary. Consult a qualified financial advisor before making financial decisions.
What Is the Credit Card True Cost Calculator?
This calculator reveals the actual total amount you'll pay when carrying a credit card balance — including all interest charges — and shows how long it will take to pay off at different monthly payment levels. It's for anyone making minimum payments on their card who has never calculated what that habit is actually costing them.
How the Calculation Works
Credit card interest compounds daily using the Average Daily Periodic Rate (APR ÷ 365). Each month, interest is added to your balance before your payment is applied — meaning a larger share of every payment goes to interest, not principal. The calculator runs month-by-month, applying your payment and adding new interest each cycle until the balance reaches zero.
Why This Number Matters
The average American carries $6,000 in credit card debt at roughly 20% APR — that's $1,200 in interest every year, just for carrying the balance. Pay only the minimum (typically 2% of the balance) and you'll spend 17+ years paying off that $6,000 while paying over $9,000 in interest alone. Seeing this number is often the single most powerful catalyst for paying off debt aggressively.
Frequently Asked Questions
Why do minimum payments take so long to clear a balance?
Minimum payments are typically 1–2% of your balance — barely enough to cover the interest charged that month. On a $5,000 balance at 22% APR, the minimum might be $100 but $91 goes to interest, leaving only $9 reducing actual principal. This structure is intentional; card issuers profit from extended repayment.
Should I pay off credit card debt before investing?
Almost always yes. Paying off 20% APR debt is equivalent to earning a guaranteed 20% return — no investment reliably matches that. The exception: capture your full employer 401k match first (it's an instant 50–100% return), then aggressively attack card debt.
What's the fastest strategy to eliminate credit card debt?
The debt avalanche — paying minimum on all cards, throwing extra cash at the highest-APR card first — minimizes total interest paid. A balance transfer to a 0% intro APR card can eliminate interest entirely for 12–21 months, letting 100% of every payment reduce principal.