Credit Card Payoff Calculator
See exactly how many months it takes to pay off your credit card and how much interest you'll pay. Enter balance, interest rate, and monthly payment to get a full paydown chart.
How to use this tool
- Enter current balance, annual interest rate (apr) and monthly payment in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your months to pay off and the full breakdown beneath it.
Credit cards charge compound interest daily, so carrying a balance is expensive. Making only the minimum payment can trap you in debt for years. This calculator shows the impact of paying more than the minimum.
⚠ This tool provides general estimates for education only and is not financial, tax or legal advice. Figures may not reflect your situation — verify with a qualified professional.
Formula
Each month: balance = balance − payment + (balance × r)
Where r = monthly rate (APR ÷ 12). The loop repeats until balance ≤ 0.005 or 600 months. If the monthly payment does not exceed the monthly interest charge, the payment is automatically raised to balance × r + 1 to guarantee payoff.
How it works
This calculator simulates credit card paydown month by month: interest is added on the current balance at the monthly APR rate, then the fixed payment is subtracted, and the process repeats until the balance reaches zero.
The simulation assumes a constant monthly payment and a fixed APR throughout. Minimum payment requirements, penalty rates, fees, and variable-rate changes are not modelled; results are most accurate for a single card paid at a steady fixed amount.
Worked example
- Inputs: $600 balance, 0% APR, $100 monthly payment.
- Month 1: interest = $0; balance = 600 − 100 = $500.
- Months 2–5 continue at −$100 each month.
- Month 6: balance = 100 − 100 = $0. Loop ends at m = 6.
Months to pay off: 6 | Total interest paid: $0
Common mistakes to avoid
- Entering today's minimum payment as a fixed amount — real minimums shrink as the balance drops, but this calculator holds payment constant, so the payoff date is already optimistic.
- Forgetting that new purchases are not modeled; the chart assumes a frozen balance, so continued spending will extend actual payoff far beyond the projection.
- Using the daily periodic rate from the statement instead of APR / 12; credit cards compound daily, so the true monthly cost is slightly higher than this model shows.
Key terms
- APR (Annual Percentage Rate)
- The yearly interest rate charged on an outstanding credit card balance; divided by 12 to get the monthly periodic rate.
- Monthly periodic rate
- APR divided by 12; applied to the current balance each month to compute the interest charge for that period.
- Minimum payment trap
- When a monthly payment barely exceeds the monthly interest, almost no principal is reduced, dramatically extending payoff time.
- Paydown simulation
- A month-by-month calculation that tracks balance changes by subtracting the net payment (payment minus interest) from the previous balance.
- Total interest paid
- The cumulative sum of all monthly interest charges from the first payment until the balance reaches zero.
Frequently asked questions
- What if my payment barely covers the interest?
- If your payment is less than or equal to the monthly interest charge, the balance never falls. The calculator automatically raises your payment by $1 above interest to show meaningful progress.
- How can I pay off faster?
- Try increasing your payment by even $20–50/month — the chart will show how dramatically that shortens the timeline and cuts total interest.