How to use this calculator
- Enter your Card balance and the Card APR from your statement.
- Enter the Monthly payment you plan to make, and keep it fixed.
- Read Months to pay off and Total interest.
- Compare with Payment to clear it in 12 months and the 24-month payment to choose a target.
How card interest works
Card interest is charged on the balance you carry, using the APR divided into smaller periods. Each month the interest is added, then your payment is taken off. If the payment barely exceeds the interest, the balance falls very slowly and the debt can last for years.
B_k = B_(k−1) · (1 + r) − P, n = −ln(1 − B·r / P) / ln(1 + r)- B = starting balance
- r = monthly rate (APR ÷ 12 ÷ 100)
- P = fixed monthly payment
- n = months to pay off (valid when P is larger than B · r)
The calculator repeats that cycle month by month until the balance reaches zero. It assumes you add no new purchases.
Example: $5,000 at 22% APR
Right now the card charges $91.67 a month in interest. Paying $200 a month clears the balance in 34 months with $1,750 of interest, so the total paid is $6,750. Paying only $150 stretches it to 52 months and $2,798 of interest. Paying $400 finishes in 15 months and costs just $732.
Every extra dollar early is worth more, because it removes a full month of interest at a high rate.
When the payment is too small
Take $8,000 at 24.99% APR. The first month's interest is $166.60. A payment of $160 does not even cover it, so the balance would grow and the calculator warns that the debt never ends. At $200 it takes 87 months and $9,367 of interest, more than the original balance. At $300 it takes 40 months and $3,797.
The jump from $200 to $300 saves 47 months. If you can only manage a small increase, look for the payment that clears the debt in a set time using the 12-month and 24-month rows.
Ways to get out faster
- Pay more than the minimum; minimums are designed to be low and can keep you in debt for many years.
- Target the highest APR first (the avalanche method) or the smallest balance first (the snowball method) if you have several cards.
- Consider a balance-transfer offer or a lower-rate personal loan, but count any transfer fee and the rate after the promotional period. Use the loan calculator to compare.
- Stop adding new purchases to the card while you repay it.
- Ask the issuer for a lower APR; some will agree, especially if you pay on time.
After you are out of debt
Keep the same monthly amount and send it to savings. A small cushion from the emergency fund calculator helps prevent a new balance when a surprise bill arrives. For installment debt, see the loan payoff calculator.
Assumptions and limits
The calculator assumes a fixed APR, a fixed monthly payment, no new charges, no annual fees and no late fees. Real cards compute interest on a daily balance and may have promotional rates, penalty APRs or a minimum payment that changes with the balance.
If you struggle to keep up, a nonprofit credit counseling agency can review your options at low or no cost.
Frequently asked questions
How long will it take to pay off my credit card?
Enter your balance, APR and monthly payment above. At $200 a month, a $5,000 balance at 22% takes 34 months.
Why does the calculator say my balance never gets paid off?
Your payment is no larger than the interest charged each month, so the principal does not shrink. Pay more than the monthly interest shown.
Should I pay the minimum?
The minimum keeps the account in good standing but costs the most interest. Paying more shortens the debt and the cost.
Which card should I pay off first?
Mathematically the one with the highest APR. Some people prefer the smallest balance first for motivation; both beat paying minimums only.
Does the APR change the payoff time that much?
Yes. A higher APR means more of each payment is interest, so it takes longer and costs more to reach zero.