How to use the credit card payoff calculator
- Enter your card balance and the interest rate (APR).
- Choose how long a monthly payment takes and enter the payment, or choose payment needed to finish by a target and enter the number of months.
- Read the time to pay off (or the payment needed), the total interest and the final payment.
- Download the CSV for the month-by-month schedule.
Formula
Monthly rate r = APR / 12
Each month: interest = balance x r (rounded to the cent); balance = balance + interest - payment
Payment must be greater than the first month's interest, or the balance never falls
Payment for a target of n months = Balance x r / (1 - (1 + r)^-n), rounded to the cent
The last payment is whatever clears the balance. Up to 1,200 months are simulated, and longer plans are rejected as not reasonable.
Worked examples with $5,000 at 22.9% APR
A set payment: the first month's interest is $5,000 x 0.229 / 12 = $95.42. Paying $200 a month leaves $104.58 going to the balance in month 1. The card is paid off in 35 months, with total interest of $1,859.75 and a final payment of $59.75. You pay $6,859.75 in total.
A target date: to be debt-free in 24 months the payment is $261.62. Total interest is $1,278.84 and the last payment is $261.58.
Too low a payment: a payment of $95.42 or less does not cover the interest, so the balance never goes down. The calculator shows an error instead of a result.
Why minimum payments take so long
Card issuers often set the minimum as a small percent of the balance plus interest and fees. Because the minimum falls as the balance falls, payoff can take many years and cost a large share of the original balance in interest. A fixed payment, even a modest one, finishes the balance much sooner. Use this tool to compare a few payment sizes and see the interest each one costs.
Making the plan work
Stop adding new charges while you pay the balance down, or the results here will not match reality. If you have more than one debt, the debt payoff calculator compares the snowball and avalanche orders. A lower rate through a balance transfer or a consolidation loan can also help, but check the fees. You can model a loan with the loan calculator.
How the issuer may calculate interest
Many cards compute interest daily from an average daily balance, and add it at the end of the billing cycle. A monthly estimate based on APR / 12 is close, but your statement can differ by a few dollars. Grace periods, promotional rates and fees are not modeled.
Assumptions and limits
- A fixed APR and the same payment every month, with interest charged monthly on the running balance.
- No new purchases, cash advances, fees or rate changes after today.
- The payment must exceed the first month's interest. Plans that run longer than 100 years are treated as errors.
- In target mode the payment is rounded to the cent, and the last payment may differ by a few cents.
- Daily interest, grace periods, promotional APRs and minimum payment formulas are not modeled.
- This is an estimate for planning, not financial advice.
Frequently asked questions
How long will it take to pay off my credit card?
Enter your balance, APR and the monthly payment you plan to make. The calculator steps through each month, adding interest and subtracting your payment, and reports the number of months and the total interest.
How much should I pay each month to be done in a set time?
Choose the target months option and enter how many months you want. The result is the level payment that clears the balance by then, assuming no new charges.
Why does it say my payment is too low?
If your payment is not greater than one month of interest, the balance cannot fall. Paying more than the interest shown is the first step to paying the card off.
Does paying more than the minimum save money?
Yes. Every extra dollar reduces the balance that interest is charged on. Compare two payments in this calculator and look at the difference in total interest.