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Simple Calculators

Credit Card Payoff Calculator

See your payoff date, total interest, and how much you save by paying above the minimum

Credit Card Payoff Calculator
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Quick summary

Enter your balance, APR, and either a fixed monthly payment or a target payoff period to see how many months it takes to clear the card, your total interest, and your payoff date. Example: $5,000 at 20.99% APR paid at $200 a month takes 34 months and costs about $1,632 in interest. The calculator also compares your plan with paying only a 2% minimum. Results assume no new charges and a constant APR.

Reviewed by Simple Calculators TeamLast reviewed

For planning only — not financial or tax advice. Results are estimates based on your inputs and the stated assumptions. Confirm important decisions with a qualified professional.

How to use this calculator

  1. Enter your Current Balance from your latest statement.
  2. Enter the card's APR (%), found on your statement or cardholder agreement.
  3. Choose a Payoff Method: Fixed Monthly Payment, or Pay Off By Date.
  4. Enter your Monthly Payment, or pick a Target Payoff Period from 6 to 84 months, then click Calculate Payoff Plan.
  5. Read Monthly Payment, Months to Pay Off, Total Interest, and Payoff Date, then check the minimum-payments comparison and the first 12 months of the payment schedule.

Credit Card Interest Formula

Monthly Interest Charge

Interest=Balance×APR12×100\text{Interest} = \text{Balance} \times \frac{\text{APR}}{12 \times 100}
Balance
Balance at the start of the month
APR
Annual Percentage Rate (%)

Worked example

$5,000 balance at 20.99% APR, paying $200 per month

Given
Balance = $5,000
APR = 20.99%
Calculation
Interest=5,000×20.991200\text{Interest} = 5{,}000 \times \frac{20.99}{1200}
Result
$87.46 interest in month 1, so $112.54 of the $200 payment reduces the balance (paid off in 34 months, $1,632.08 total interest)

Payment to Pay Off by a Target Date

PMT=B×r1−(1+r)−n\text{PMT} = \frac{B \times r}{1 - (1 + r)^{-n}}
B
Current balance
r
Monthly rate (APR ÷ 12 ÷ 100)
n
Target payoff period in months

Worked example

Paying off a $5,000 balance at 20.99% APR in 24 months

Given
B = $5,000
r = 0.0174917 (20.99% ÷ 12)
n = 24
Calculation
PMT=5,000×0.01749171−(1.0174917)−24\text{PMT} = \frac{5{,}000 \times 0.0174917}{1 - (1.0174917)^{-24}}
Result
PMT ≈ $256.90 per month; the calculator rounds up to $256.91 so the card is paid off within the 24 months

Frequently asked questions

How is credit card interest calculated?

This calculator charges interest each month as the balance times the APR divided by 12, adds it to the balance, then subtracts your payment. At 20.99% APR, a $5,000 balance accrues about $87.46 in the first month. Most issuers actually compute interest daily using APR ÷ 365 on your average daily balance, so your statement may differ by a small amount.

Why does it take so long to pay off credit cards with minimum payments?

Minimum payments take a long time because most of each payment goes to interest, so the balance falls slowly. This calculator models a minimum of 2% of the balance or $25, whichever is greater. At 20% APR, a $5,000 balance paid that way takes about 486 months, roughly 40 years, and costs around $18,500 in interest. Your card's actual minimum formula may differ.

How much should I pay each month to be debt-free by a certain date?

Choose Pay Off By Date and pick a target period, and the calculator works out the fixed payment using the loan payment formula. For example, clearing $5,000 at 20.99% APR in 24 months takes $256.91 a month. The payment is rounded up to the cent, and nudged up a cent if needed, so the schedule always finishes within the period you pick.

What is APR vs. interest rate on a credit card?

On a credit card, the APR is the yearly interest rate charged on balances you carry, and for purchases it is effectively the card's interest rate. Many cards have separate APRs for purchases, balance transfers, and cash advances, plus a penalty APR after late payments. Enter the APR that applies to the balance you are paying off.

How does a balance transfer help pay off credit card debt?

A balance transfer can help by moving debt to a card with a low or 0% introductory APR, so more of each payment reduces principal. Most transfers charge a fee, often a percentage of the amount moved, and the regular APR applies after the promotional period ends. Run this calculator at the promotional rate and again at the regular rate to compare.

What is the minimum payment on a credit card?

The minimum payment is the smallest amount you must pay by the due date to keep the account in good standing. Issuers commonly set it as a flat dollar amount or a percentage of the balance, sometimes plus that month's interest and fees, whichever is greater. Your cardholder agreement lists the exact formula, and your statement shows how long minimum-only payments would take.

What happens if my payment is less than the monthly interest?

If your payment is less than or equal to the interest charged each month, the balance will not go down and can grow over time. For example, $5,000 at 24% APR accrues $100 of interest in the first month, so a $90 payment never pays the card off. Pay more than the first month's interest shown in the formula above to make progress.

Key terms

APR (Annual Percentage Rate)
The annual rate of interest charged on unpaid credit card balances.
Minimum Payment
The smallest amount required monthly to keep your account in good standing, typically 1–2% of balance.
Balance Transfer
Moving debt from one credit card to another, often to take advantage of a lower or 0% introductory APR.
Amortization
The process of paying off a debt through regular installment payments that cover both principal and interest.

Methodology, sources & limitations

This page shows the formula, assumptions, and limitations used for this estimate. Rates, thresholds, and other time-sensitive inputs can change, so verify them against the relevant official source before relying on a result.

For our review approach and the primary sources we consult, see the methodology and source policy. If you spot an outdated figure or formula, please contact us with a correction.