Credit Card Payoff Calculator
See how long a card balance takes to clear at a fixed monthly payment, and how much interest that costs.
Must be more than the monthly interest, or the balance never falls.
- Time to clear the balance
- 2 years 9 months
- Total interest
- $1,521.02
- Total paid
- $6,521.02
Paying $200.00 a month at 19.99% clears $5,000.00 in 2 years 9 months, with $1,521.02 of interest. Interest is added monthly.
How it is calculated
Each month: interest = balance × APR ÷ 12, then balance = balance + interest − payment
Example: $5,000 at 19.99% APR, paying $200 a month, takes 33 months and costs $1,521.02 in interest.
Assumptions and limitations
- Interest is added monthly at one-twelfth of the APR. Some issuers use daily rates, so results may differ slightly.
- No new purchases are added to the balance.
- Fees, penalty rates and promotional rates are not included unless you enter them as the APR.
What this calculator tells you
A credit card carries a balance that earns interest for the lender every month you do not clear it. This calculator shows how long a balance takes to pay off at a fixed monthly payment, and the total interest you will pay along the way. It makes the cost of carrying a balance visible, which is often easy to miss when only the minimum payment is looked at.
The calculator uses a fixed monthly payment and a fixed annual percentage rate, applied as a monthly rate. It assumes you make no new purchases on the card during the payoff, so the balance falls every month.
How the payoff is worked out
Each month, the interest charge is the balance multiplied by the annual rate divided by twelve. The rest of your payment reduces the balance. If the payment is larger than the monthly interest, the balance falls, and the next month's interest is smaller. The process repeats until the balance reaches zero. If the payment is not larger than the monthly interest, the balance never falls, and the calculator reports that the card cannot be paid off at that payment.
A worked example
Suppose you owe 3,000 at a 20% annual rate and pay 150 a month. The first month's interest is 3,000 multiplied by 20% and divided by twelve, which is 50. Of your 150 payment, 50 covers interest and 100 reduces the balance to 2,900. The next month's interest is slightly lower, and the balance continues to fall. Because a larger share of each payment goes to principal over time, the balance drops faster as it shrinks.
Why the minimum payment is expensive
Minimum payments are often set as a small percentage of the balance plus interest. They keep the account in good standing but can stretch repayment over many years, with interest accumulating throughout. Raising the payment, even modestly, can cut the time and the total interest substantially. A useful test is to compare the total interest at the minimum payment with the total at a payment you could realistically make.
Assumptions and limits
The calculator assumes a single rate for the whole payoff. Many cards use different rates for purchases, cash advances and balance transfers, and some offer introductory rates that end after a period. Late fees, penalty rates and any new purchases are not modelled, so the real time and cost may be higher than shown.
The rate on a variable card can change. If your card uses a variable rate, the calculator's result is an estimate that will move with it.
Protecting progress once you start
Once a payment plan is set, the balance can slip back if new charges are added. Consider reducing the card limit, using a separate card only for planned purchases, or setting up automatic payments above the minimum. Each measure helps the balance keep falling after the calculation has shown the path.
Using the result
Use the calculator to set a monthly payment that clears the balance by a date you choose. If the result is far longer than you want, look at options such as moving the balance to a lower-rate loan, cutting spending to free up cash, or paying more than the minimum each month. Each option has its own fees and conditions, so compare the total cost of each before deciding.
Frequently asked questions
Why does the monthly interest use the annual rate divided by twelve?
Cards usually quote an annual rate but charge interest monthly. Dividing the annual rate by twelve gives the monthly rate applied to the balance each month.
What happens if my payment is less than the monthly interest?
The balance will not fall, because interest is larger than the payment. The calculator reports that the card cannot be paid off at that payment, and you need a larger payment to make progress.
Does this include new purchases on the card?
No. It assumes you stop using the card while you repay the balance. New purchases add to the balance and extend the payoff time.
Does this include a balance transfer rate?
No. The calculator uses one fixed rate. If you have a promotional rate, enter it for the period it applies and then the standard rate for the remaining months.
Can a larger payment save a lot?
Often yes. A higher payment cuts the balance faster, so less interest accumulates. Compare the total interest at the minimum payment and at a higher figure to see the difference.