How to use the Credit Card Payoff Calculator
- 1 Enter your current card balance.
- 2 Enter the card's APR from your statement.
- 3 Enter the fixed monthly payment you plan to make.
- 4 Read the months to pay off, total interest and total paid. Raise the payment to see how much you save.
Worked example
$5,000 at 22% APR, paying $200 a month. The first month's interest is $5,000 × 22% ÷ 12 = $91.67. Paying $200 every month clears the card in 34 months, with about $1,749.88 of interest, so you pay $6,749.88 in total. At $300 a month it takes 21 months and about $1,021.60 of interest.
Features
Month-by-month maths
Interest is added each month at APR ÷ 12 before your payment is applied, the way card interest builds up.
Warns when it never ends
If the payment does not cover the first month's interest, the calculator tells you the balance will never fall.
See the saving
Try a higher payment and watch the months and interest drop.
When to use it
Planning a debt-free date
Set a target month, then raise the payment until the payoff time fits. Write the date down and track it each statement.
Making a payoff plan
Pick a payment that clears the card within a year or two and stick to it.
Minimum payments trap
Compare the minimum payment with a fixed higher amount to see the difference in interest.
Balance transfer check
Compare interest at your current APR with what you would pay after a transfer fee.
Frequently asked questions
How is credit card interest calculated?
Most cards charge interest daily on the average balance, which is close to the APR divided by 12 each month. This calculator uses the monthly figure, so real results can differ slightly.
Why does a small payment take so long?
Early on, much of each payment covers interest. At 22% APR, $200 a month on $5,000 takes 34 months; $300 a month takes 21 months and saves over $700 in interest.
Does this include new purchases?
No. It assumes you stop using the card. New spending adds to the balance and lengthens the payoff.
Should I pay more than the minimum?
Yes, if you can. The CFPB notes that paying only the minimum can take years and cost much more in interest.
What if my APR changes?
Enter the new APR to update the plan. Promotional rates often rise after the intro period ends.
Which card should I pay off first?
Paying the highest-APR card first (the avalanche method) saves the most interest. Paying the smallest balance first (the snowball method) gives quicker wins. Either beats minimum payments.
Will paying off my card help my credit score?
Usually yes. Lower balances reduce your credit utilization, one of the biggest factors in most credit scores.
What is a good monthly payment to aim for?
Aim to pay at least 3% to 5% of the balance each month, or more if you can. On a $5,000 balance that is $150 to $250. The higher the payment, the faster the balance falls, because less of each payment goes to interest over time.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated