Finance

Credit Card Payoff Calculator

See how long a credit card balance takes to clear, how much interest it costs, and what payment gets you debt-free by a date.

35 moDebt-free in2.9 years
$200.00Monthly payment
$1,859.78Total interest
$6,859.78Total repaid

For comparison, paying only a typical minimum (1% of balance plus interest, at least $25; about $195.42 to start) would take 19.3 years and cost $8,453.56 in interest. Your plan saves $6,593.78.

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About the Credit Card Payoff

Card interest compounds monthly on whatever you still owe, so a small change in your payment moves the payoff date and the total interest far more than most people expect. Enter your balance and APR, then either a monthly payment to see the timeline, or a deadline to see the payment you need. A comparison against minimum payments shows what the extra effort saves.

How to use the Credit Card Payoff

  1. Enter your current balance and the card’s APR from your statement.
  2. Pick “I know my monthly payment” and type an amount, or pick “debt-free by…” and enter the number of months.
  3. Read the payoff time, total interest and total repaid.
  4. Compare with the minimum-payment line to see how much a higher payment saves.

The formula behind it

Each month: interest = balance × APR ÷ 12; new balance = balance + interest − payment. Payment for a fixed term = balance × r ÷ (1 − (1 + r)^−n), where r is the monthly rate and n the number of months.

Frequently asked questions

Why does my balance not go down?

If your payment is no larger than one month of interest (balance × APR ÷ 12) the balance never shrinks. The calculator flags this and tells you the minimum payment that makes progress.

How is credit card interest calculated?

Issuers usually apply a daily rate (APR ÷ 365) to your average daily balance. Using APR ÷ 12 per month is a close, standard approximation for planning.

Should I pay the highest-APR card first?

Mathematically yes (the “avalanche” method), because it removes the most expensive interest first. Paying the smallest balance first (“snowball”) costs a little more but wins on motivation for many people.

Does this include new purchases or fees?

No. It assumes you stop using the card and pay a fixed amount each month. New spending or late fees will lengthen the timeline.

What is a typical minimum payment?

Many issuers charge the larger of a small flat amount (often $25–$35) or about 1% of the balance plus that month’s interest. Your statement states yours exactly; the comparison here is an illustration.

Results are estimates for planning. Your issuer’s exact figures depend on daily balance, billing cycle and fees.