Credit Card Payoff Calculator

How long a card balance takes to clear, and what it costs.

%
Shows what adding this amount would save.
35Months to clear the balance
$1,719.56Total interest paid
$6,719.56Total you repay
That is
2 years 11 months
Interest in the first month
$95.42
Months if you pay 250 instead
26
Interest saved by paying extra
$503.12

Paying 200 a month clears 5000 in 35 months.

Estimates only. Real statements may compound daily, apply fees and allocate payments differently. Check your card terms.

About the Credit Card Payoff Calculator

Credit card interest is charged monthly on the balance that remains, so a payment only makes progress with whatever is left after interest. This calculator runs the balance forward month by month at your rate and payment, which is why it can also tell you the point at which a payment is too small to ever clear the debt.

The extra-payment comparison is the part worth acting on. Because interest compounds on a shrinking balance, a modest increase in the monthly payment often cuts both the time and the total interest dramatically: on a 5,000 balance at 22.9 percent, paying 250 instead of 200 typically saves years of payments and hundreds in interest. If you carry balances on several cards, clear the highest rate first while paying the minimum on the rest.

How to use the Credit Card Payoff Calculator

  1. Enter your current balance and the card APR from your statement.
  2. Enter the amount you actually pay each month.
  3. Add an extra amount to compare, then read the payoff time, total interest and the saving.

Frequently asked questions

Why does paying the minimum take so long?

Minimum payments are usually set at 1 to 3 percent of the balance, which barely exceeds the interest charge. Most of each payment goes on interest, so the balance falls very slowly and the debt can last decades.

How is credit card interest calculated?

The APR is divided by twelve to give a monthly rate, which is applied to the balance. At 22.9 percent APR, a 5,000 balance accrues about 95 in interest in the first month alone.

Should I pay off the smallest balance or the highest rate first?

Mathematically the highest interest rate first saves the most money. The smallest balance first, sometimes called the snowball method, clears cards sooner and can be easier to stick with. Both beat paying minimums on everything.

Does a balance transfer help?

Often yes, if the transfer fee is smaller than the interest you would otherwise pay during the promotional period. Model it by rerunning the calculation with the promotional rate and adding the fee to the balance.