Credit Card Payoff Calculator
Credit card debt is expensive in a way that is easy to underestimate, because the minimum payment is designed to keep the balance alive. This calculator shows what a fixed payment really does: how many months until the balance reaches zero, how much interest you hand over along the way, and how much time and money a larger payment saves.
Cards usually calculate interest daily and charge the accumulated interest monthly, then set the minimum at a small percentage of the balance plus that interest. The consequence is that as the balance falls, the minimum falls with it, so a borrower who always pays the minimum makes progress that slows down every month. Fixing a payment above the minimum reverses that dynamic, because the payment stays constant while the balance shrinks.
The numbers get dramatic at typical card APRs. A $6,000 balance at 22% APR paid at the minimum can take more than a decade and cost several thousand dollars in interest, while a fixed $250 payment finishes it in about two and a half years for a fraction of that interest. The gap between those two outcomes is the single most valuable calculation in personal finance.
This model assumes the rate stays fixed, no new charges are added, and the payment is the same every month. Real cards can change your rate, and any new spending resets the projection. If you are carrying a balance, the most effective steps are to stop adding to it, pay a fixed amount above the minimum, and consider a lower-rate consolidation only if the fees make it worthwhile.
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How the math works
- Each month: interest = balance × (APR ÷ 12); principal = payment − interest; the balance then falls by that principal amount.
- If the payment is no larger than the first month's interest, the balance never declines and the debt never clears.
- The required payment to clear the balance in a chosen number of months uses the standard amortisation payment formula.
- Total interest is the sum of all monthly interest charges until the balance reaches zero.
Frequently asked questions
How long will it take to pay off my credit card?
Why is paying the minimum so expensive?
What payment clears my balance fastest?
Does the order of payments matter?
Is a balance transfer a good idea?
What if I keep using the card?
This credit card payoff calculator is an educational estimate using a fixed rate and a fixed payment. It does not model promotional rates, cash-advance balances, fees, or new spending. Contact your issuer for your exact payoff terms.