Credit Card Payoff Calculator
A $5,000 balance at 22% APR takes 34 months to pay off at $200 a month and costs $1,749.88 in interest. To clear it in 24 months instead you'd pay $259.40 a month and $1,225.32 in interest.
Assumes no new purchases or fees while you pay it down.
Debt-free in
2 years 10 months
Total interest
$1,749.88
Total paid
$6,749.88
Number of payments
34
Show the math
- 1
Monthly interest rate
22% APR ÷ 12 = 1.8333% a month
Card interest is quoted yearly (APR) but charged monthly on the balance you carry.
= 1.8333%
Read the steps as text
- Monthly interest rate. 22% APR ÷ 12 = 1.8333% a month Card interest is quoted yearly (APR) but charged monthly on the balance you carry.
- Months to pay off. n = −ln(1 − r × B ÷ P) ÷ ln(1 + r) = −ln(1 − 0.018333 × 5,000 ÷ 200) ÷ ln(1.018333) = 33.75 In the first month $91.67 of your $200.00 goes to interest and $108.33 reduces the balance. That split improves every month.
- Total interest. 34 payments, the last one $149.88 → $6,749.88 paid − $5,000.00 balance = $1,749.88 Worked out month by month, since the final payment is usually smaller than the others.
How card interest adds up
Credit card interest is quoted as a yearly rate (APR) but charged monthly. Each month the card adds roughly APR ÷ 12 of your balance as interest, then your payment comes off. At 22% APR that's about 1.83% a month: $91.67 on a $5,000 balance.
Early on, much of each payment goes to interest. As the balance shrinks, so does the interest, and more of each payment reduces the debt. The calculator works this out month by month, which also captures the smaller final payment.
Why paying more makes such a difference
Paying just above the interest barely moves the balance. At $100 a month, the same $5,000 at 22% takes 137 months (over 11 years) and costs $8,678 in interest, more than the original debt. Doubling the payment to $200 cuts that to under 3 years and $1,750, and $300 a month clears it in 21 months.
If the payment doesn't cover the first month's interest, the balance never goes down and the calculator says so. Moving the balance to a 0% transfer card or a lower-rate loan can help, as long as you account for transfer fees and the rate after the promotional period.
Frequently asked questions
- How long will it take to pay off my credit card?
- It depends on the balance, the APR and your payment. Enter all three above. The formula is n = −ln(1 − r × B ÷ P) ÷ ln(1 + r), where r is the monthly rate, B the balance and P the payment.
- Is paying only the minimum a good idea?
- It's the most expensive way to pay off a card. Minimum payments are often around 1% of the balance plus interest, which can stretch a payoff out for many years and double what you pay.
- Does this include new purchases?
- No. It assumes you stop using the card while paying it down. New purchases add to the balance and push the payoff date back.
- Why might my card's numbers differ slightly?
- Most cards compound interest daily on the average daily balance. This calculator uses the APR ÷ 12 monthly approximation, which is usually within a few dollars.