Credit Card Payoff Calculator
Calculate how long it takes to pay off your credit card balance by entering your current balance, annual interest rate (APR), and either a fixed monthly payment or a target payoff timeline. The calculator shows months to payoff, total interest paid, and total amount repaid. Credit cards use compound interest: interest accrues on your outstanding balance each billing cycle. US issuers typically calculate daily periodic interest (APR divided by 365) applied to your average daily balance, which this calculator approximates using APR divided by 12 for simplicity. Minimum payments are designed to cover interest plus a small slice of principal, which means paying only the minimum keeps a balance on your card for many years. Even small increases in your monthly payment dramatically accelerate payoff and cut total interest. The calculator offers two modes: Fixed Payment mode (if you know how much you can afford per month) and Target Payoff Date mode (if you have a specific debt-free goal and need to know what payment that requires). Understanding the minimum payment amount on your statement helps you plan an aggressive payoff strategy.
Enter your balance and APR below to see your payoff timeline and total interest cost.
How credit card interest works
Credit cards charge compound interest, meaning interest accrues on your outstanding balance each billing cycle. Most US issuers calculate interest using a daily periodic rate (your APR divided by 365) applied to your average daily balance each day of the statement period. Over a 30-day month, the effective monthly rate is very close to APR divided by 12, which is the method this calculator uses for simplicity.
The result is that the longer a balance stays on your card, the more interest compounds on top of it. Minimum payments are designed to cover the interest plus a small slice of principal, which can keep a balance on your card for a decade or more if you never increase the payment.
Monthly rate = APR / 12 / 100
Monthly interest = balance x monthly rate
New balance = balance - (payment - monthly interest)
Repeat until balance reaches zero
Fixed payment vs. target payoff date: which mode to use
Use Fixed payment mode when you already know how much you can afford to pay each month and want to see how long it will take and what it will cost in total interest. This is useful for budgeting.
Use Target payoff date mode when you have a goal in mind (for example, paying off your card before a major purchase or within a set number of months) and need to know what monthly payment that requires. This helps you work out whether the goal is achievable within your budget.
Worked example with default values
Default inputs: $5,000 balance, 22.99% APR.
Mode A: fixed payment of $200/month
- Monthly rate = 22.99 / 12 / 100 = 0.019158
- Month 1 interest = $5,000 x 0.019158 = $95.79
- Principal paid in month 1 = $200 - $95.79 = $104.21
- Balance after month 1 = $5,000 - $104.21 = $4,895.79
- Repeating this simulation: payoff in approximately 32 months, total interest approximately $1,299
Mode B: target payoff in 24 months
- Using the standard loan payment formula: payment = balance x r x (1+r)^n / ((1+r)^n - 1)
- r = 0.019158, n = 24
- Required payment = approximately $256/month
- Total interest over 24 months = approximately $1,147
Strategies to pay off faster
The avalanche method prioritises the card with the highest APR first while making minimum payments on all others. Once the highest-rate card is cleared, you roll that payment to the next highest. This minimises total interest paid and is the mathematically optimal approach.
The snowball method targets the smallest balance first regardless of rate. The psychological benefit of eliminating individual debts quickly can help sustain motivation. For multiple cards, try the debt payoff calculator to compare both methods side by side.
Even without a formal strategy, paying any fixed amount above the minimum each month reduces the principal faster, shortening the timeline and lowering total interest. Small consistent increases in payment have an outsized effect because of how compound interest works.
Credit card payoff: frequently asked questions
How is credit card interest calculated?
Most US credit cards use a daily periodic rate (APR divided by 365) applied to your average daily balance each day. This calculator uses the simplified monthly method (APR divided by 12) which gives closely comparable results for practical planning purposes. For exact figures specific to your account, check your card's Schumer Box or terms and conditions. Source: CFPB (consumerfinance.gov).
What is a good strategy for paying off credit card debt?
The avalanche method targets the highest-APR card first, minimising total interest paid over time. The snowball method targets the smallest balance first, which can provide psychological momentum. Both strategies benefit from paying more than the minimum each month. The CFPB's debt management guide is available at consumerfinance.gov/consumer-tools/debt-collection/.
How does paying more than the minimum help?
When you pay only the minimum, most of each payment covers interest and very little reduces your principal balance. Even a small extra payment each month dramatically shortens the payoff timeline and cuts total interest, because a lower principal means less interest accrues the following month. The effect compounds over time.
What is the minimum payment on a credit card?
Minimum payments are set by your card issuer and are typically the greater of a fixed floor amount (often $25 or $35) or a percentage of your statement balance (commonly 1 to 3 percent) plus any interest and fees charged that month. Check your most recent card statement for your exact minimum. Paying only the minimum can extend a balance for many years and result in paying several times the original purchase price in interest.
Official sources
- Credit card interest and terms: CFPB, Credit cards.
- Debt management strategies: CFPB, Debt management.
- Understanding your credit card: CFPB, What is a credit card?
Reviewed by the CalculatorHub team, edited by James Graham, 12 June 2026. See our methodology. General information, not financial advice.