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Credit Card Payoff Calculator

This credit card payoff calculator shows how long it takes to pay off a balance with a fixed monthly payment, and how much interest that costs. Or enter a target number of months to see the payment you'd need.

What do you want to know?

Result

Paid off in 2 years 10 months

Number of payments34
Total interest$1,749.88
Total paid$6,749.88

Assumes no new charges and interest at APR ÷ 12 each month.

How Credit Card Payoff Works

When you carry a balance, the card charges interest each month. Your payment covers that interest first; only the rest reduces what you owe. The bigger your payment compared with the interest, the faster the balance falls.

The Math

Months to pay off (fixed payment)

Each month:

  1. Interest = balance × (APR ÷ 12)
  2. New balance = balance + interest − payment

The calculator repeats this until the balance reaches zero. There’s also a closed-form estimate:

Months = −ln(1 − r × B ÷ P) ÷ ln(1 + r), where B is the balance, P the payment and r = APR ÷ 12.

If P ≤ r × B, the payment doesn’t cover the interest and the balance never goes down.

Payment for a target number of months

Payment = B × r ÷ (1 − (1 + r)^−n), the same formula used for installment loans.

Worked Example

A $5,000 balance at 22% APR, paying $200 a month:

  • Monthly rate: 0.22 ÷ 12 = 1.833%
  • First month’s interest: $5,000 × 0.01833 = $91.67, so $108.33 reduces the balance
  • Months: −ln(1 − 0.01833 × 5,000 ÷ 200) ÷ ln(1.01833) = 33.75, so 34 payments (the last one smaller)
  • Total interest: about $1,749.88
  • Total paid: $6,749.88

Doubling the payment to $400 a month: 15 months and about $731.60 in interest — about $1,018 saved.

Tips and Limitations

Your statement will differ slightly

Issuers usually calculate interest daily, using the APR divided by 360 or 365, and may use the average daily balance. Monthly APR ÷ 12 is a close approximation for planning.

New charges slow everything down

The calculator assumes no new purchases. Any new spending on the card adds to the balance and pushes the payoff date back.

Several cards?

When you have more than one balance, the order you pay them in matters. The debt payoff calculator compares the snowball and avalanche methods across all your debts.

Check your card’s terms

Promotional rates, penalty APRs, and separate rates for cash advances or balance transfers all change the picture. Your cardholder agreement and monthly statement show the rates that apply.

Frequently Asked Questions

How long will it take to pay off my credit card?

It depends on the balance, the interest rate and your payment. A $5,000 balance at 22% APR with $200 a month takes 34 months to pay off, with about $1,750 in interest, assuming no new charges.

How is credit card interest calculated?

According to the CFPB, card issuers generally divide the APR by 360 or 365 to get a daily rate and apply it to the balance each day or to the average daily balance. This calculator uses the APR divided by 12 each month, which is close but won't match a statement to the cent.

What happens if I only make the minimum payment?

Payoff takes longer and costs more interest. If a payment doesn't even cover the monthly interest, the balance never falls, and the calculator tells you so.

How much do I need to pay to clear my card in a year?

Switch to "Payment to pay off by…" and enter 12 months. For $5,000 at 22% APR, the payment is about $468 a month.

How much does paying more each month save?

Doubling the payment on a $5,000 balance at 22% APR from $200 to $400 cuts the payoff time from 34 months to 15 and the interest from about $1,750 to about $732.

What is a grace period?

The CFPB explains that if your card has a grace period, you can avoid interest on purchases by paying the full balance by the due date each month. Once you carry a balance, interest is charged as this calculator assumes.

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Sources

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