Credit Card Payoff Calculator
Credit card interest compounds on the unpaid balance at rates that often exceed 20% APR. Enter your balance and monthly payment to see the payoff time and total interest, then test a higher payment.
Enter your figures below. Results update as you type.
Paid off in2 yr 8 mo
- Balance 74%
- Interest 26%
- Total interest
- $2,225.66
- Without the extra payment
- 4 yr 4 mo
- Time saved
- 1 yr 8 mo
- Interest saved
- $1,517.54
- With extra payment
- Without
How the Credit Card Payoff calculation works
Monthly interest = balance x (APR / 12)
At 22.9% APR a $6,500 balance accrues about $124 of interest in the first month. A $200 payment therefore reduces the balance by only $76, which is why minimum payments stretch for years.
Frequently asked questions
Should I pay the highest-rate card first?
Mathematically yes: the avalanche method minimizes interest. Paying the smallest balance first (the snowball method) costs slightly more but clears accounts faster, which some people find easier to stick with.
Does a balance transfer help?
A 0% introductory offer stops interest for a set period, but most charge a 3% to 5% transfer fee. It helps when you can repay within the promotional window.
How is credit card interest calculated?
Card issuers divide the APR by 365 to get a daily rate and apply it to your balance each day. As a rough guide, a month's interest is the balance times the APR divided by 12: $3,000 at 24% costs about $60 a month.
How long will it take to pay off my credit card?
It depends on the balance, the rate and what you pay. A $5,000 balance at 22% APR takes about 34 months to clear at $200 a month and costs roughly $1,750 in interest, assuming you add no new purchases.
What happens if I only pay the minimum?
The minimum is usually around 1% to 3% of the balance plus interest, so very little principal is repaid. A balance can take many years to clear and cost more in interest than the original purchases. Even a small fixed amount above the minimum shortens the payoff dramatically.
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