Credit Card Payoff Calculator
See how long it takes to clear a balance, the total interest you'll pay, and how much faster a bigger payment gets you debt-free.
Estimates using a monthly rate of APR / 12. Real issuers compound daily on the average daily balance, which is very close. Not financial advice.
How credit card payoff works
Unlike a fixed loan, a credit card is revolving debt with no set term. Each month interest is charged on your balance (this tool uses a monthly rate of APR ÷ 12), and whatever you pay above that interest reduces the principal. The less you pay above the interest, the longer it takes and the more interest you pay.
The minimum payment trap is real: a minimum is typically the greater of a fixed dollar amount (about $25 to $35) or a small percentage of the balance (often 1 to 3 percent), and it shrinks as the balance drops, so paying only the minimum can stretch a balance over many years. Paying a fixed, higher amount each month clears it far faster. (Issuer formulas vary; you can set the percentage and floor above.)
Important: if your monthly payment does not exceed that month's interest, the balance never goes down. This calculator detects that and warns you.
Example
A $5,000 balance at 22% APR takes about 137 months (over 11 years) to clear at $100/month. To be debt-free in 24 months instead, you would need about $259/month, which cuts the total interest dramatically.
Frequently asked questions
Why does the minimum take so long? Most of it covers interest, leaving little for principal, and it falls as the balance falls.
What if my payment is below the interest? The balance grows instead of shrinking, so you must pay more than the monthly interest.
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