Credit Card Payment Strategy Optimizer

For every card, the tool converts APR to a monthly periodic rate (APR ÷ 12), computes monthly interest, then subtracts your actual payment. Minimum payments are treated as fixed floors, and any available “extra” is allocated each month according to the selected strategy logic (by default, highest APR first for extra targeting). It runs multiple payoff scenarios until all balances reach $0 (or the maximum horizon), then totals interest and payoff time for comparison.

If you carry balances and plan to stop using the cards, the default assumption (“no new purchases”) usually gives the most realistic comparison between payoff strategies. If you expect net new charges, enabling the “allow small net new charges” model can materially change which card should be targeted. Also note that minimum payments are assumed to stay fixed; real minimums can change with balance, fees, or card terms.

If your entered minimum payment requirement is effectively unaffordable, the calculator will flag an infeasibility warning because the plan can’t assume you’ll always cover minimums. If a card has 0% APR, it still may require minimum payments, but allocating extra to it may not reduce interest as much as higher-APR balances. If your extra cash is large enough to clear the targeted card quickly, the tool redirects minimum “capacity” to the next target card automatically in later months.

This calculator uses a simplified monthly interest model and assumes payments happen once per month; it doesn’t account for grace periods, payment timing within the month, promotional APR changes, or fees. It also ignores credit limit constraints, overlimit charges, and collections impacts. Treat the results as an estimate for strategy choice, then verify with your issuer’s statements for exact interest calculations.