The True Cost of Credit Card Debt

See what your credit card balance is really costing you. Total interest, years to pay off — the numbers they'd rather you didn't calculate.

Credit card companies love minimum payments. At 2-3% of your balance, they keep you paying for years — sometimes decades — while interest accumulates. This calculator shows you what that really looks like. Enter your balance, interest rate, and monthly payment. See the total interest you'll pay and when you'll finally be free. The numbers can be sobering. A $5,000 balance at 22% APR with $150 monthly payments means paying over $1,800 in interest over 4+ years. That's $1,800 you could have spent on literally anything else. This isn't about shame — it's about seeing clearly. When you know the true cost, you can make informed decisions about how aggressively to attack the debt.

Calculator

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Warning
Payment too low to pay off debt
Minimum Payment Needed
$1.00

Common use cases

  • Understanding why minimum payments keep you trapped
  • Seeing the real cost of carrying a balance
  • Motivating yourself to pay more aggressively
  • Comparing the cost of debt vs. other financial choices

How to use

  1. Enter your current credit card balance
  2. Input your card's APR (shown on your statement)
  3. Enter how much you plan to pay each month
  4. See how long until you're debt-free

FAQ

Why does paying the minimum take so long?

Minimum payments are typically 1-3% of your balance, mostly covering interest. Very little goes to principal, extending payoff time dramatically.

Should I use the avalanche or snowball method?

Avalanche (highest interest first) saves more money. Snowball (smallest balance first) provides psychological wins. Choose what motivates you.

Will balance transfers help?

0% APR balance transfers can help if you pay off during the promotional period. Watch for transfer fees and the regular APR afterward.

Why is credit card interest so expensive?

Rates of 18-25%+ compound monthly. It's designed to be profitable for banks, not affordable for you.

This calculator provides illustrative estimates for planning purposes only and does not constitute financial, tax, or legal advice.