Credit Card Payoff Calculator
Use this credit card payoff calculator to see how long it will take to clear a balance at your card's APR and how much interest you'll pay along the way. Enter a fixed monthly payment to get the number of months, or choose a target number of months to get the payment you need. A month-by-month schedule shows where every dollar goes.
Updated
Results
- Total interest
- Total paidBalance plus interest and any new charges
- First month's interestYour payment must be higher than this plus new charges
| Month | Payment | Interest | Remaining balance |
|---|
Results are estimates. See the methodology below.
How to use the calculator
- Current balance: what you owe today.
- APR: the purchase APR printed on your statement.
- What you want to find: choose Fixed monthly payment to see how many months payoff takes, or Pay off in a set number of months to see the payment required.
- Monthly payment or payoff time: the amount you'll pay every month, or the number of months you want to be debt-free in.
- Advanced options: new charges you expect to add each month. Leave it at $0 if you've stopped using the card.
Months to pay off appears in fixed-payment mode, the required payment in set-months mode. The table lists every month; the chart splits what you've paid into principal and interest.
How the payoff is calculated
Each month the calculator charges interest at APR ÷ 12 on the balance, adds any new charges, then subtracts your payment:
new balance = balance + balance × APR/12 + new charges − payment
Interest is rounded to the cent, and the last payment is only what's left. Most issuers actually apply a daily periodic rate (APR ÷ 365, or ÷ 360 at some banks) to your average daily balance, so your statement can differ by a few dollars depending on when you pay and how long the billing cycle is.
In set-months mode the payment comes from the amortization formula:
P = B × r ÷ (1 − (1 + r)^−n)
where B is the balance, r = APR ÷ 12 and n the number of months. Monthly new charges are added on top, and the result is rounded up to the next cent so the balance hits zero on time.
Your payment must be larger than the first month's interest plus new charges; otherwise the balance never shrinks. The calculator assumes the APR stays the same and leaves out annual fees, late fees, penalty APRs, balance transfer fees and promotional rates that expire.
Worked examples
1. $5,000 at 22.99% APR
The first month's interest is $95.79, so any payment above that eventually clears the debt. Here's how the payment changes the outcome:
| Monthly payment | Months to pay off | Total interest |
|---|---|---|
| $100 | 167 | $11,694.20 |
| $200 | 35 | $1,871.10 |
| $300 | 21 | $1,081.17 |
At $100 a month you'd be paying for almost 14 years and hand over more in interest than you originally owed. Doubling to $200 cuts the time to under three years.
2. Debt-free in 24 months
Same $5,000 at 22.99%, but you want it gone in two years. Set-months mode gives a payment of $261.85 a month, $1,284.17 in total interest and $6,284.17 paid overall. Choosing 12 months raises the payment to $470.36 and cuts interest to $644.29.
3. What new charges do
You owe $8,000 at 21.5% and pay $250 a month. With no new spending you're done in 48 months and pay $3,991.10 in interest. If you keep putting $100 of new purchases on the card every month, payoff stretches to 176 months and interest climbs to $18,299.53. The total paid, $43,899.53, includes $17,600 of new purchases made over that time.
How to read your results
Compare total interest with your starting balance: that's the real cost of carrying the debt. Your statement's minimum payment warning box, required since the Credit CARD Act of 2009, shows how long payoff takes if you pay only the minimum and the monthly amount that clears the balance in 36 months. Those figures assume no new charges, the same as running this calculator with new charges at $0.
Frequently asked questions
How is credit card interest calculated?
Most cards divide the APR by 365 (some by 360) to get a daily periodic rate and apply it to your average daily balance for the billing cycle. If you pay the full statement balance by the due date, the grace period usually means no interest on purchases. Once you carry a balance, new purchases generally start accruing interest too.
Why does paying the minimum take so long?
The minimum is usually a small percentage of the balance, or the interest plus a sliver of principal, so early payments go mostly to interest. As the balance falls, the minimum falls with it and payoff stretches over many years. A fixed payment that doesn't shrink is much faster.
Why does the calculator say my payment is too low?
If the payment doesn't exceed the first month's interest plus new charges, the balance stays flat or grows. The message shows the amount you need to beat. Raise the payment, cut new charges or look for a lower rate.
My card has more than one APR. What should I enter?
Run the calculator separately for each part of the balance, or use a weighted average rate as a rough guide. Under the CARD Act rules, whatever you pay above the minimum generally goes to the balance with the highest APR first.
How do I plan around a 0% balance transfer?
Enter 0% and the number of months the promotion lasts to see the payment that clears the balance before the regular APR kicks in. Add the balance transfer fee to the balance you enter, since it's charged when you move the debt.
Sources
- CFPB — What the minimum payment box on a credit card bill means
- CFPB — Regulation Z, 12 CFR 1026.7 (periodic statements, minimum payment warning)
- CFPB — Regulation Z, 12 CFR 1026.53 (allocation of payments above the minimum)
- Federal Reserve — G.19 Consumer Credit (credit card interest rates)
- Congress.gov — H.R.627, Credit CARD Act of 2009
This calculator gives estimates for educational purposes and is not financial advice. Your issuer's interest method, fees and rate changes determine the actual amounts on your statement.