Credit Card Payoff Calculator
See how long it takes to clear a credit card balance and how much interest you'll pay at a given monthly payment.
Content updated July 31, 2026
Assumes no new purchases or fees, a fixed APR divided into monthly periods, and the same payment each month except for the smaller final payment.
Credit card interest is some of the most expensive debt there is, and paying only the minimum can stretch a balance out for years. This calculator shows the truth: enter your balance, the card's APR, and how much you can pay each month, and see exactly how long it takes to clear — and how much interest that costs.
Then try a slightly higher monthly payment. Even a small increase can cut months or years off the payoff time and save a surprising amount of interest, because more of every payment goes to the balance instead of interest.
The Credit Card Payoff formula
New balance = Balance × (1 + APR ÷ 12) − Payment, repeated each monthEach month, interest of Balance × (APR ÷ 12) is added and your payment is subtracted. The months to clear the debt is the number of repetitions until the balance reaches zero; total interest is the sum of all the interest charged along the way.
Worked example
On a $5,000 balance at 20% APR, paying $150 a month, the monthly rate is 0.20 ÷ 12 ≈ 1.67%. Under this monthly model it takes 50 payments and about $2,359 of interest; the final payment is about $9 rather than a full $150.
Assumptions, rounding, and limitations
Assumptions
- APR stays fixed and is divided into 12 equal monthly rates.
- No new purchases, fees, or missed payments occur.
- The payment is fixed except for the smaller final payment.
Rounding: The payoff formula retains full precision and calculates the exact final payment; displayed money is rounded by the currency formatter.
Limitations
- Real cards commonly use daily periodic rates and average daily balances, so statement results can differ.
- Promotional rates, fees, minimum-payment formulas, and changing payments are not modeled.
Sources
- Credit card contract definitions — daily periodic rate and daily balance — U.S. Consumer Financial Protection Bureau
Why the minimum payment traps you
Minimum payments are typically set at a small percentage of the balance, much of which is eaten by that month's interest. That leaves very little to reduce what you actually owe, so the balance barely moves and interest keeps accruing on it.
Paying a fixed amount above the minimum — and not adding new charges — is what breaks the cycle. This calculator uses a fixed monthly payment so you can see the effect clearly.
Strategies to pay off faster
Pay more than the minimum, consistently. Even $20–50 extra a month compounds in your favour.
Consider a 0% balance-transfer offer if you qualify — it pauses interest so your whole payment reduces the balance, though watch for transfer fees and the end of the promo period.
Stop adding new purchases to the card while you pay it down, or the balance never falls.
Frequently asked questions
▶How is credit card interest calculated?
Card interest usually compounds daily based on your APR and average balance. This calculator applies the monthly equivalent of your APR to the outstanding balance each month for a clear payoff estimate.
▶What if my payment is too low?
If your monthly payment is less than the first month's interest, the balance will grow instead of shrink and the debt is never repaid. The calculator will flag this so you can increase the payment.
▶How long will it take to pay off my credit card?
That depends on your balance, APR, and how much you pay each month. Enter those three numbers above and the calculator shows the exact number of months — and how a higher payment shortens it.
▶Why does paying the minimum cost so much?
Minimum payments are a small percentage of the balance, and much of that is swallowed by the month's interest. Very little reduces what you owe, so the debt lingers for years and interest keeps piling up.
▶Does a balance transfer help clear the debt faster?
A 0% balance-transfer offer pauses interest, so your whole payment reduces the balance instead of feeding interest. Watch for the transfer fee and what the rate jumps to once the promotional period ends.
▶Should I pay off the highest-APR card first?
Mathematically yes — clearing your highest-interest debt first (the 'avalanche' method) saves the most money. Some people prefer clearing the smallest balance first (the 'snowball' method) for the motivation of quick wins.
Learn more
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Open calculator →Disclaimer: Credit Card Payoff Calculator results are estimates for general information and education only, and are not financial, tax, legal or medical advice. Verify important decisions with a qualified professional.