Credit Card Payoff Calculator
See how long it takes to clear your balance, how much interest you’ll pay, and how extra payments change the picture.
Calculate
Months to zero
The formula
With monthly rate r = APR/12 and payment P > r×Balance, months follow n = ln(P / (P − rB)) / ln(1+r). We simulate month-by-month for total interest and the final partial payment. Minimum-payment scenarios use interest + 1% of balance each month (floor $25).
Worked example
- Balance $5,000, APR 22%, payment $200/mo
- Monthly rate r ≈ 1.833%; first-month interest ≈ $91.67
- Simulated payoff 34 months; total interest ≈ $1,749.88
Result: Debt-free in 34 months
How payoff time is estimated
Revolving credit compounds monthly. Fixed payments above interest gradually retire principal.
Minimum payment trap
Card minimums are often a small percentage of balance plus interest. Paying only the minimum can stretch payoff for years. This tool’s “minimum only” scenario uses interest + 1% of the remaining balance each month (at least $25) as a common planning estimate — your issuer’s formula may differ.
Payment too low
If your payment is less than or equal to that month’s interest, the balance does not fall (and may grow). Raise the payment above monthly interest to make progress.
Target payoff mode
When you set a target months-to-zero, we solve for the fixed monthly payment that clears the balance in that time (standard amortizing payment formula), then simulate interest totals the same way.
Assumptions
Fixed APR, no new charges, no fees, payment applied at month-end after interest accrues. Real statements may use daily balance methods — treat results as planning estimates.
Interesting facts
Interest first
Each payment covers accrued interest first; only the remainder reduces principal.
APR vs daily rate
Issuers often use a daily periodic rate. Monthly APR/12 is a close planning approximation.
New purchases hurt
Adding charges while paying down resets the clock — this model assumes no new spending.
Avalanche vs snowball
With multiple cards, targeting highest APR first usually minimizes interest (avalanche method).
CFPB resources
Consumer agencies publish guidance on understanding credit card interest and payoff strategies.
Frequently asked questions
Enter balance, APR, and monthly payment. We estimate months to zero and total interest, or warn if the payment is too low.
Your payment does not exceed monthly interest, so principal never shrinks. Increase the payment above the interest amount shown.
No. It assumes you stop using the card and pay a fixed amount each month.
Monthly rate ≈ APR ÷ 12. A 24% APR is about 2% per month on the balance.
With multiple cards, the avalanche method directs extra payments to the highest-APR balance first while paying minimums on the rest. It typically minimizes total interest paid compared with paying cards in any other order.
Generally yes — minimum payments are often set low and can stretch payoff over many years while interest accrues. Compare the “what if you paid more” table to see interest saved and months gained.
This calculator does not model transfer fees or promotional 0% periods directly, but you can approximate one by entering the transferred balance with the promotional APR (often 0%) and your planned payment to see payoff time during that window.
References
- How to pay off credit card debt Consumer strategies for revolving debt.
- What is a credit card APR? Plain-language APR explanation.