Credit Card Payoff Calculator
Find out how long it takes to clear a credit card balance, how much interest it costs, and what monthly payment would clear it by a chosen date.
Como usar esta calculadora
- 1Choose whether you want to know how long a payment takes, or what payment clears the balance by a deadline.
- 2Enter your current card balance and its APR — both appear on your statement.
- 3Enter either your monthly payment or the number of months you want to be debt free in.
- 4Read the total interest, then try a higher payment to see how quickly the cost falls.
Como funciona
Credit card payoff formulas
n = −log(1 − B × i / P) / log(1 + i) P = B × i / (1 − (1 + i)^−n) B = balance, i = APR ÷ 12, P = monthly payment n = number of months
Interest is charged each month on whatever balance remains, so every payment is split between interest and principal. Early payments are mostly interest; as the balance falls, more of each payment goes to principal and the payoff accelerates. The two formulas are the same relationship solved for time and for payment.
Exemplo resolvido
A $6,000 balance at 22.9% APR paid at $250 a month clears in 31 months and costs about $1,668 in interest. Raising the payment to $400 clears it in 17 months and cuts the interest to roughly $869 — paying $150 more a month saves nearly $800.
Credit Card Payoff Calculator: o guia completo
Why minimum payments cost so much
A typical minimum payment is around 2% of the balance or a small fixed floor, whichever is larger. At a 20%+ APR, that leaves only a sliver going to principal in the early months — which is why the calculator's minimum-payment figure is often measured in decades rather than years.
Because the minimum shrinks as the balance shrinks, the payoff slows down exactly when momentum matters most. Fixing your payment at today's minimum instead of letting it fall is one of the cheapest ways to cut years off a card balance.
Avalanche or snowball with several cards
With more than one card, the avalanche method pays the minimum on everything and throws all spare cash at the highest APR first. It is mathematically optimal — it always produces the lowest total interest.
The snowball method targets the smallest balance first instead. It costs slightly more in interest, but clearing a whole card early is a visible win that keeps many people going. Run each card through this calculator separately to see how much the difference actually costs you, then choose the method you will stick to.
Balance transfers and the promotional window
A 0% balance transfer replaces the interest cost with a one-off fee, usually 3–5% of the amount moved. To check whether it is worth it, run your current balance here to get the interest you would otherwise pay, then compare it with the fee.
The trap is the end of the promotional period. Set the payment so the balance reaches zero before the intro rate expires — enter the number of promotional months in the second mode and the calculator gives you exactly that payment.
Perguntas frequentes
Why does my card statement show slightly different interest?
Most issuers compute interest daily on the average daily balance and then charge it monthly, while this calculator compounds once a month. The results are very close but can differ by a few dollars, and by more if your balance moves around during the month.
What happens if I keep using the card?
New purchases are added to the balance and start accruing interest, which pushes the payoff date back. This calculator assumes no further spending, so treat its answer as the best case for the payment you enter.
Is it better to pay off debt or invest?
Credit card APRs are typically well above realistic long-run investment returns, and paying down a balance is a guaranteed return equal to the interest rate. Clearing high-rate card debt first is almost always the stronger financial move once you have any employer retirement match secured.
Why does the calculator say my payment will never clear the balance?
Because it is smaller than the interest charged that month, so the balance grows rather than shrinks. The payment has to exceed balance × APR ÷ 12 before any of it reaches the principal.