Finance Calculator
Credit Card Payoff Calculator
Find out how long your credit card balance will take to clear and what it will cost in interest. Enter your balance, APR and monthly payment, or model minimum payments instead, and see the full month-by-month schedule alongside what paying extra would save.
Credit Card Payoff Calculator
Payoff time and total interest from balance, APR and payment
Most cards are 15–30%
The same amount every month until the balance clears.
Added on top each month
First month's interest: $75.00 of your $200.00 payment
Results
Enter your balance, rate and payment to see results
Understanding Credit Card Payoff
Every month, interest is charged on your outstanding balance and your payment is applied afterwards. Whatever is left of the payment reduces the principal. The race between those two amounts decides everything — how long the debt lasts and what it ultimately costs.
Early on, a large share of each payment goes to interest. On a $5,000 balance at 18%, the first $75 of any payment is swallowed by interest before a cent touches the principal. As the balance falls that share shrinks, which is why progress accelerates toward the end.
The consequence that surprises people most is what happens when the payment barely exceeds the interest. At $76 a month against that same $75 monthly charge, the debt takes 291 months and costs $17,107 in interest — more than three times the original balance.
Payoff Formulas
1. Monthly Interest Rate
2. Months to Pay Off
3. Monthly Amortisation
What the totals actually come from:
Why the Last Payment Is Smaller
The formula rarely returns a whole number of months, and that fraction matters. For the $5,000 balance at 18% paying $300 a month, it gives 19.32 months. After nineteen full payments the balance is not zero — it is $95.74. So the payoff takes twenty months, and the twentieth payment is $97.17 rather than $300.
This has a direct consequence for the interest figure. Calculating it as payment × months − balance assumes every payment is the full amount, which overstates the cost:
| Scenario | Months | Actual Interest | Simple Formula | Overstated By |
|---|---|---|---|---|
| $5,000 @18%, $200/mo | 32 | $1,313.96 | $1,400.00 | $86.04 |
| $5,000 @18%, $300/mo | 20 | $797.17 | $1,000.00 | $202.83 |
| $3,000 @22%, $150/mo | 26 | $771.43 | $900.00 | $128.57 |
| $10,000 @20%, $400/mo | 33 | $3,044.21 | $3,200.00 | $155.79 |
This calculator sums the interest actually charged month by month, which is what appears on a real statement.
The Minimum Payment Trap
Minimum payments are typically a percentage of the balance, often around 2%, subject to a small floor. The catch is that the payment shrinks as the balance shrinks, so the closer you get to clearing it, the slower you go.
On a $3,000 balance at 22% APR with a 2% minimum, the first payment is $60 — and $55 of that is interest. Just five dollars reduces the debt. The comparison against fixed payments is stark:
| $3,000 at 22% APR | Time | Interest | Total Repaid |
|---|---|---|---|
| Minimum only (2% / $25) | 662 months | $21,419.50 | $24,419.50 |
| Fixed $150/month | 26 months | $771.43 | $3,771.43 |
Fifty-five years versus just over two, and $21,419 versus $771. Paying the minimum on that balance means repaying 8.1 times what you borrowed. Note too that no closed-form formula applies to a declining minimum — it has to be worked out month by month.
When the Balance Never Clears
If your payment does not exceed the monthly interest, the balance grows no matter how long you keep paying. On $5,000 at 18% the monthly interest is exactly $75, and that figure is a hard threshold:
| Monthly Payment | Payoff Time | Total Interest |
|---|---|---|
| $74 | Never | — |
| $75 = the interest | Never | — |
| $76 | 291 months | $17,106.60 |
| $100 | 94 months | $4,311.18 |
| $200 | 32 months | $1,313.96 |
Look at the jump from $75 to $76: one extra dollar a month is the difference between never clearing the debt and clearing it in 291 months. Note also that the closed-form formula fails here — the logarithm's argument turns negative — so the calculator checks for this case before attempting any arithmetic.
What Paying Extra Saves
Because every extra dollar goes straight to principal, small increases have outsized effects. On the $5,000 balance at 18%:
| Monthly Payment | Months | Interest | Saved |
|---|---|---|---|
| $200 current | 32 | $1,313.96 | — |
| $225 | 28 | $1,127.78 | $186.19 |
| $250 | 24 | $989.13 | $324.83 |
| $300 | 20 | $797.17 | $516.79 |
| $400 | 14 | $578.63 | $735.34 |
An extra $25 a month — $800 over the payoff — saves $186 and finishes four months sooner. Doubling to $400 halves the time and saves $735.
Benefits of Using the Credit Card Payoff Calculator
Example Calculations
Three scenarios worked through step by step:
Example Scenario 1 — Fixed Payment
Balance $5,000, APR 18%, paying $200 a month.
Monthly Rate = 18 ÷ 12 ÷ 100 = 0.015
First month's interest = $5,000 × 0.015 = $75.00
n = log(200 ÷ (200 − 75)) ÷ log(1.015) = 31.5680 months
31.57 is not whole, so 31 full payments leave a balance — payoff takes 32 months
Total interest = $1,313.96 · Total paid = $6,313.96
The final payment is $113.96, not the full $200
Result: 2 years 8 months, $1,313.96 in interest
Example Scenario 2 — Higher Payment
Same $5,000 at 18%, paying $300 a month.
n = log(300 ÷ (300 − 75)) ÷ log(1.015) = 19.3223 months
After 19 full payments the balance is still $95.74 — not paid off
Payoff therefore takes 20 months, the last one partial
Total interest = $797.17 · Total paid = $5,797.17
The final payment is $97.17
Result: 20 months, $797.17 in interest — $516.79 less than at $200/month
Example Scenario 3 — Minimum Payment Only
Balance $3,000, APR 22%, minimum of 2% or $25, whichever is greater.
Month one: minimum = greater of $60 (2%) or $25 = $60.00
Month one's interest = $3,000 × 0.018333 = $55.00
Only $5.00 of that first $60 payment reduces the balance
As the balance falls the 2% minimum falls with it, so progress slows
Result: 662 months — 55 years 2 months — and $21,419.50 in interest
You would repay 8.1 times the original balance
A fixed $150 a month clears the same debt in 26 months for $771.43
Assumptions Behind the Numbers
These figures assume a fixed APR, no new purchases on the card, and no fees or late charges. Every one of those can change the outcome: continuing to spend while paying down extends the timeline indefinitely, promotional 0% rates expire and revert to the standard APR on whatever remains, and a missed payment can trigger a penalty rate. Some issuers also charge interest on the average daily balance rather than the opening balance, so a real statement may differ by a small amount. If you carry balances on several cards, paying the highest APR first costs least overall. This calculator provides general information, not financial advice.
Frequently Asked Questions
- How do you calculate credit card payoff time?
- Convert the APR to a monthly rate by dividing by 12 and by 100, then apply n = log(P ÷ (P − B × r)) ÷ log(1 + r). On a $5,000 balance at 18% paying $200 a month that gives 31.57 months, which rounds up to 32 because a partial month still needs a payment.
- Why does the formula give a fraction of a month?
- Because the final payment is almost never exactly the full amount. A result of 19.32 months means nineteen full payments leave something outstanding — $95.74 in the case above — so a twentieth partial payment is needed. Rounding down would report a payoff that has not actually happened.
- How is total interest calculated?
- By summing the interest actually charged each month, which is what your card issuer does. The simpler approach of payment × months − balance overstates it, because it assumes every payment is the full amount when the last one is usually much smaller. On the $300-a-month example it would say $1,000 rather than the true $797.17.
- What happens if my payment is less than the interest?
- The balance never reduces — it grows. On $5,000 at 18% the monthly interest is $75, so any payment at or below that leaves you no better off, and the closed-form formula breaks down entirely. The calculator detects this and tells you the minimum payment needed to make any progress.
- Why do minimum payments take so long?
- Because they shrink as the balance shrinks. A 2% minimum on $3,000 is $60, of which $55 goes straight to interest at 22% APR — only $5 reduces the debt. As the balance falls the required payment falls too, so the tail stretches out enormously. That $3,000 takes 662 months and costs $21,419 in interest.
- How much does paying extra actually save?
- Far more than most people expect, because the saving compounds. On $5,000 at 18%, going from $200 to $225 a month — just $25 more — cuts four months and saves $186. Going to $400 a month halves the payoff time and saves $735 in interest.
- What APR should I use?
- The purchase APR shown on your statement. Most credit cards sit between 15% and 30%. Note that cash advances and balance transfers often carry different rates, and promotional 0% periods expire — after which the standard rate applies to whatever is left.
- Does this account for new purchases?
- No. It assumes you stop adding to the balance, which is the assumption that makes any payoff plan work. Continuing to spend on the card while paying it down extends the timeline, sometimes indefinitely, and no calculator can predict that for you.
- How accurate is the payoff date?
- It is a good estimate under fixed conditions, but real cards vary. Some issuers charge interest on the average daily balance rather than the opening balance, fees and late charges add to the total, and a missed payment can trigger a penalty APR. Treat the date as indicative rather than exact.
- Should I pay off the highest rate or smallest balance first?
- Mathematically, highest APR first — the avalanche method — always costs least in total interest. Smallest balance first, the snowball method, costs slightly more but clears individual cards sooner, which some people find easier to sustain. This calculator handles one card at a time either way.