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Credit Card Payoff Calculator
See how long it takes to clear a credit card balance at your monthly payment, how much interest it costs, and what to pay to be debt-free sooner.
How it works
Each month the card charges interest of APR ÷ 12 on the balance, and your payment is taken off. The number of months to reach zero is n = −ln(1 − B × r ÷ M) ÷ ln(1 + r), where B is the balance, r the monthly rate and M your payment. The calculator then adds up every payment, so the final, smaller payment is counted correctly.
If your payment is less than the monthly interest, the balance never falls, and the calculator tells you the minimum needed.
Worked example
A $5,000 balance at 22.9% APR with $200 a month takes 2 years and 11 months to pay off and costs about $1,860 in interest. Raising the payment to about $262 clears it in 2 years.
Ways to pay off credit cards faster
- Avalanche method: pay the minimum on every card and put extra money on the card with the highest APR. This saves the most interest.
- Snowball method: put extra on the smallest balance first. Quick wins can keep you motivated.
- Balance transfer: a 0% transfer card can stop interest for a year or more, but check the transfer fee (often 3% to 5%).
- Stop new spending on the card while you pay it down, or the payoff date keeps moving.
Why minimum payments cost so much
Minimum payments are often only 1% to 3% of the balance plus interest. Paying only the minimum on a large balance can take well over a decade and cost more in interest than the original debt.
Frequently asked questions
How long will it take to pay off $5,000 on a credit card?
At 22.9% APR, about 35 months at $200 a month, or 24 months at about $262 a month.
Why does my balance barely go down?
Most of a small payment goes to interest. Paying even $25 to $50 more each month can cut months off the payoff time.
Does this include new purchases?
No. It assumes you stop using the card and the APR stays the same.
Is it better to pay off the highest rate or smallest balance first?
Highest rate first saves the most money. Smallest balance first can be easier to stick with. Both work if you keep going.
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