FAQ
Frequently asked questions
How the calculator works, how the strategies differ, and what the numbers can and cannot tell you.
Written by Morgan Reed, Founder of MyCreditCardPayoffCalculator · Last updated August 2026
How does the credit card payoff calculator work?
You enter each card’s balance, APR and minimum payment. The calculator applies one month of interest (APR divided by 12) to each balance, subtracts the minimums, then applies your extra payment to whichever card your strategy targets first. When a card reaches zero, its minimum cascades into the next card. It repeats month by month until every balance is cleared, then reports the number of months, the total interest, the payoff order and your milestone dates.
Is my financial information stored anywhere?
No. Every calculation runs in your browser using JavaScript. Balances, rates and payments are never transmitted to a server, and nothing is saved after you close the tab.
What is the difference between avalanche and snowball?
Avalanche directs your extra payment to the card with the highest APR, which minimises total interest. Snowball directs it to the smallest balance, which clears an account sooner and builds momentum. Both use the same total monthly payment. Avalanche is usually cheaper — often by a modest amount — while snowball is often easier to sustain.
Which method should I actually use?
If your APRs differ by more than about six points, avalanche’s advantage is meaningful and worth the discipline. If previous payoff attempts stalled, snowball’s early win is worth more than the interest difference. Run both in the calculator and compare the real dollar gap for your numbers before deciding.
How accurate is the payoff date?
It is a close estimate. We compound monthly rather than daily, and we assume your APR, minimum payment structure and extra payment stay constant, with no new charges. Real-world results shift with variable rates, fees and any new spending, so treat the date as a planning target rather than a guarantee.
When does a balance transfer make sense?
When the interest you would otherwise pay clearly exceeds the transfer fee, and when you can realistically pay the transferred balance plus the fee within the promotional window. Divide that total by the promo months — if the resulting payment does not fit your budget, the transfer will leave a balance behind at the card’s standard APR.
Does a balance transfer hurt my credit score?
A new application adds a hard inquiry and lowers your average account age, which usually costs a few points temporarily. The new credit limit also lowers your overall utilization ratio, which often helps more. Keeping the old card open at a zero balance protects that benefit.
Is debt consolidation better than paying cards individually?
Only if the loan APR is meaningfully lower than your average card APR and you stop charging the cards. A fixed-term loan also gives you a guaranteed end date, which many people value. Watch for origination fees, which are deducted from the loan proceeds and raise the effective rate above the headline APR.
Should I close cards once they are paid off?
Usually no. Closing a card removes its limit from your utilization calculation, which can raise your ratio overnight, and eventually shortens your credit history. If an annual fee is the issue, ask the issuer to switch you to a no-fee version of the card instead.
Is this financial advice?
No. MyCreditCardPayoffCalculator provides educational tools and general information only. We are not a lender, broker, credit counsellor or registered adviser, and nothing here is personalised financial, tax or legal advice. Verify figures with your issuer and consult a qualified professional about your own situation.