How to use this credit card payoff calculator
Everything you need is on your latest statement. Results update as you type, and the comparison with minimum payments is always shown.
- Card balance: what you owe today.
- Interest rate (APR): the purchase APR from your statement.
- How will you pay it off? Choose Fixed payment to pay the same amount every month, Minimum only to see what the card's minimum would do, or By a date to find the monthly payment that clears the card in a set number of months.
- Minimum payment, % of balance: your card's minimum rule. The hint shows this month's minimum in dollars.
- More options: set the minimum payment floor, switch on Minimum also includes the month’s interest if your card uses a "1% plus interest" rule, and add any new spending you will keep putting on the card.
You will see your time to debt-free and the date, total interest and total paid, plus how long minimum payments would take and how much you save by paying more. The chart compares the two balances over time, and the schedule shows every month for shorter plans or each year for longer ones.
How the payoff is calculated
The calculator steps through your card one month at a time:
New balance = balance + balance × (APR ÷ 12) + new spending − payment Minimum payment = the larger of (% × statement balance) and the floor, or (% × balance + the month's interest) if that option is on
Interest is charged at APR ÷ 12 each month. Most cards actually use a daily rate on your average daily balance, which compounds slightly more often, so your real interest will usually be a little higher than shown. For the By a date option, the payment comes from the standard loan formula, balance × r ÷ (1 − (1 + r)−n), plus your monthly spending. The calculator never lets your payment drop below the card's minimum, just as the card issuer would not.
Worked example
You owe $6,000 at 22% APR and decide to pay $250 a month. The monthly rate is 22% ÷ 12 = 1.83%, so the first month's interest is $110 and only $140 of your payment reduces the balance, to $5,860.
Keep paying $250 and the card is clear after 32 payments, or 2 years 8 months. You pay $7,979 in total, of which $1,979 is interest. Raising the payment to $300 clears it 6 months sooner and saves another $436.
Now compare minimum payments of 2% of the balance with a $25 floor. The first minimum is $122.20, but it shrinks as the balance falls. Paying only the minimum would take 75 years 7 months and cost $44,974 in interest. The fixed $250 plan saves $42,995.
Why minimum payments take so long
At 22% APR, a month's interest is about 1.83% of your balance. A 2% minimum covers that and very little else: in the example, $110 of the first $122.20 payment is interest and only $12.20, or 0.2% of the balance, pays down the debt. Because the minimum is a percentage, it shrinks as the balance shrinks, so the payoff never speeds up. It only ends once the balance is small enough for the fixed floor to take over.
The fix is simple. Keep paying this month's minimum as a fixed amount, even as the card asks for less. On the example, paying $122.20 every month clears the card in 10 years 7 months and saves $35,475 compared with minimums. Cards that use "1% of the balance plus interest" are less extreme: the first minimum would be $171.10, and paying only the minimum would take 20 years 5 months and cost $9,764 in interest.
The one habit that matters most: choose a fixed monthly payment you can sustain, set it up as an automatic payment, and leave it there as the balance falls.
How much difference your payment makes
Here is the same $6,000 balance at 22% APR, with no new spending:
| Monthly payment | Time to debt-free | Total interest |
|---|---|---|
| Minimum only (2%, $25 floor) | 75 yrs 7 mos | $44,974 |
| $150 | 6 yrs 1 mo | $4,913 |
| $200 | 3 yrs 8 mos | $2,791 |
| $250 | 2 yrs 8 mos | $1,979 |
| $300 | 2 yrs 2 mos | $1,543 |
| $400 | 1 yr 6 mos | $1,081 |
| $500 | 1 yr 2 mos | $839 |
Moving from $150 to $250 a month gets you out of debt almost three and a half years sooner and saves $2,934. The first extra dollars make the biggest difference, because they shorten the time interest has to build.
Paying off your card by a target date
If you have a date in mind, choose By a date and enter the number of months. On the example balance, clearing it in 12 months takes $561.57 a month and costs $739 in interest. Over 24 months it is $311.27 a month and $1,470 of interest. Over 36 months it is $229.14 a month and $2,249 of interest.
In the US, card statements must show how long minimum payments alone would take and what monthly payment would clear the balance in three years. Your statement figure may differ slightly from ours because of daily interest and your card's exact minimum rule.
Ways to clear your card faster
- Stop adding to it. New spending eats your payment before it reaches the debt. In the example, $50 a month of new purchases turns a 2-year-8-month plan into 3 years 8 months, the same as paying only $200.
- Move the balance to a lower rate. A 0% balance transfer or a cheaper consolidation loan can help, but count the fees. The personal loan calculator shows a loan's true APR with fees.
- Tackle several cards in order. Pay the minimum on all of them and put every spare dollar on one. The debt payoff planner compares paying the highest rate first (avalanche) with the smallest balance first (snowball).
- Check the bigger picture. If card repayments are squeezing your budget, see how your debts compare with your income using the debt-to-income calculator.
Frequently asked questions
How is credit card interest calculated?
What happens if I only make the minimum payment?
How is the minimum payment worked out?
Does paying more than the minimum help my credit score?
Is a balance transfer worth it?
Should I consolidate my cards with a personal loan?
This calculator gives estimates for education and planning. It is not financial advice, and your lender's figures may differ. See how we calculate.