Credit Card Payoff Calculator
Find out how long a card balance will take to clear at your current payment, what the interest adds up to, and what a modest increase would change.
Why card debt behaves differently
An instalment loan has a fixed term: the lender sets a payment that clears it by a known date. A credit card does not. You choose the payment, and that choice determines the term — which is why the same balance can take two years or twenty.
The mechanics are simple and unforgiving. Interest is charged monthly on the balance. Your payment covers that interest first, and only what is left reduces what you owe.
The threshold that decides everything
If your payment is at or below the monthly interest, the balance does not fall. Not slowly — not at all.
A $5,000 balance at 18% accrues $75 of interest a month. Pay $75 and you will owe $5,000 forever. Pay $70 and the balance grows despite paying every month without fail.
This calculator checks for that case explicitly and tells you the minimum needed to make any progress, rather than returning an implausible number of months.
Reading the results
Two figures matter beyond the payoff date.
Total interest is what the debt costs. On a $6,800 balance at 22.9% paying $250 a month, it comes to about $2,882 — over 40% of the balance again, for nothing.
Interest saved by paying more is the figure that changes behaviour. Adding $100 a month to that example clears the balance fourteen months earlier and saves about $1,104. The extra $100 is not a $100 benefit; it is a $100 payment that also removes every future interest charge that debt would have generated.
A worked example
$6,800 at 22.9% APR, paying $250 a month. The monthly rate is about 1.91%, so the first month's interest is $129.77 — more than half the payment. Only $120.23 reduces the balance.
It takes 39 months to clear, with about $2,882 of interest. By the final payments almost the whole $250 reduces the balance, because there is barely any interest left to charge.
Why minimum payments last so long
The example above assumes a fixed $250. Real minimum payments are usually a percentage of the balance, so they shrink as the balance does.
That is what stretches card debt out for decades. Each month the required payment falls, so the amount reaching the principal falls too, and progress slows exactly as it should be speeding up. Paying a fixed amount rather than the shrinking minimum is one of the most effective changes available.
What this does not model
- New spending. The calculation assumes nothing further is added. Continuing to use the card restarts the arithmetic.
- Shrinking minimums. A fixed payment is assumed, which is the better strategy but not what most cards require.
- Promotional rates. A 0% period followed by a standard rate is not modelled.
- Fees and penalty rates. Annual fees, late fees, and penalty APRs after a missed payment are excluded.
- Multiple cards. Run each balance separately.
Frequently asked questions
Why does my balance barely move even though I pay every month?
Because most of the payment is going to interest. At a high APR on a large balance, the monthly interest can be more than half a modest payment, leaving little to reduce what you owe.
The month-by-month table on this page shows the split for your own figures.
Should I pay off the highest rate or the smallest balance first?
Highest rate first costs less in total interest. Smallest balance first clears individual debts sooner, which some people find easier to sustain.
The mathematically cheaper route is the highest rate. The better route is whichever you will actually keep to.
Is a balance transfer worth it?
It can be, if you clear the balance within the promotional period. Weigh the transfer fee, which is commonly a few percent, against the interest you would otherwise pay — this calculator gives you that second figure.
The risk is treating the transfer as breathing room and arriving at the end of the promotion with the balance intact.
What happens if I only ever pay the minimum?
Because minimums fall as the balance does, payoff stretches far longer than a fixed payment of the same starting size — often into decades on a large balance, with interest exceeding the original amount.
Your statement is required to show a comparison of paying the minimum against paying it off in three years. It is worth reading.
Does carrying a balance help my credit score?
No. Paying interest does not improve a credit score. Using a card and paying it in full each month builds the same payment history at no cost.
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This calculator is provided for general educational and estimation purposes only. It does not constitute financial or debt advice. Card terms vary, minimum payments usually change as the balance falls, and promotional rates expire. Check your cardholder agreement, and consider contacting a non-profit credit counselling service if debt has become unmanageable.