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Credit Card Payoff Calculator

See how long it will take to pay off a credit card, how much interest you will pay, and what payment clears it by your target date.

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This assumes a fixed monthly payment, a fixed APR, interest added monthly, and no new charges or fees. Your card issuer may calculate interest differently.

Quick Answer

Each month, interest is added to your balance and your payment is taken off. A $5,000 balance at 20% APR with $200 monthly payments takes 33 months to clear, and costs about $1,522 in interest. Paying more each month cuts both the time and the interest.

Last updated: 2 November 2026 ·How we calculate this: monthly interest calculation

Table of Contents

How This Credit Card Payoff Calculator Works

This calculator repeats what happens on your card each month: it adds interest at one-twelfth of your APR, then takes off your payment. It counts the months until the balance reaches zero, and adds up the interest.

Quick explanation: monthly interest = balance × APR ÷ 12.

  • Payment: must be more than the monthly interest, or the debt never falls.
  • Target months: shows the payment needed to finish by then.
  • New charges: not included, so stop adding to the card for this result to hold.

How to Use the Credit Card Payoff Calculator

  1. Enter your current card balance from your statement.
  2. Enter the card’s APR for purchases.
  3. Enter the fixed amount you can pay each month.
  4. Optionally, enter a target number of months to see the payment you would need.
  5. Press Calculate to see the payoff time, total interest and target payment.

Core Formulas

  • Monthly rate: r = APR ÷ 12
  • Each month: new balance = balance × (1 + r) − payment
  • Payment for a target: P = B × r ÷ (1 − (1 + r) ^ −n)

B is the balance and n is the number of months.

Key Terms

  • APR: annual percentage rate, the yearly interest rate on your balance.
  • Minimum payment: the smallest amount you must pay each month to keep the account in good standing.
  • Balance transfer: moving debt from one card to another, often to get a lower or 0% promotional rate.
  • Credit utilization: your card balances as a share of your credit limits. Lower is usually better for your score.
  • Penalty APR: a higher rate some issuers charge after a late or missed payment.

Worked Example

You owe $12,000 at 24.99% APR and pay $400 a month.

  • First month interest = 12,000 × 24.99% ÷ 12 = $249.90
  • Only $150.10 of your first payment reduces the balance
  • It takes 48 months to clear, with about $7,023 in interest

Real-Life Examples

  • Paying a bit more: on $5,000 at 20%, paying $150 a month takes 50 months and costs about $2,359 in interest. Paying $300 takes 20 months and about $907.
  • A balance transfer: moving $5,000 to a card with 0% for 18 months and a 3% fee means paying $5,150 ÷ 18 = $286.11 a month. Clearing it in 18 months at 20% would take $323.82 a month, with about $829 in interest.
  • Setting a goal: to be debt-free in 24 months on $5,000 at 20%, you need $254.48 a month.

Debt Avalanche vs Debt Snowball

  • Avalanche: pay extra on the card with the highest APR first. This usually saves the most interest.
  • Snowball: pay extra on the smallest balance first. Quick wins can help you stay motivated.
  • Both: keep making the minimum payment on every other card.
  • Try both: our Debt Avalanche and Debt Snowball calculators compare them for several cards.

Payoff Time for a $5,000 Balance at 20% APR

Assumes no new charges.

Monthly paymentMonthsTotal interest
$100109$5,840
$15050$2,359
$20033$1,522
$25025$1,133
$30020$907
$40015$654
$50012$515

Ways to Pay It Off Faster

  • Pay more than the minimum: extra payments go straight to the balance.
  • Stop new charges: new spending pushes the payoff date back.
  • Plan several cards: try our Debt Snowball or Debt Avalanche calculators.
  • Check balance transfer costs: compare any fee with the interest you would save.

Common Mistakes to Avoid

  • Paying only the minimum. Minimums shrink as the balance falls, so payoff can take many years.
  • Still using the card. New charges undo your progress.
  • Missing payments. Late fees and penalty APRs make debt grow faster.
  • Ignoring transfer fees. A 3% to 5% fee is often charged on balance transfers.
  • Spreading extra money thinly. Focus extra payments on one card at a time.

Frequently Asked Questions

It depends on your balance, APR and payment. Enter them above to see the number of months and the total interest.

Issuers usually use a daily rate on your balance. This calculator uses a monthly estimate of APR ÷ 12, which is close for planning.

Early payments go mostly to interest. Paying more than the minimum puts more toward the balance.

Your balance stays the same. The calculator shows a message if your payment does not cover the monthly interest.

That usually saves the most interest. Our Debt Avalanche Calculator shows how this works across several cards.

Issuers use their own formula, often a small percentage of the balance plus interest and fees, or a fixed minimum. Check your statement.

It can be if you clear the balance before the 0% period ends and the fee is lower than the interest you would save.

Lower balances usually lower your credit utilization, which can help your score over time.

References & Sources

SourceUsed ForLink
Consumer Financial Protection Bureau, Credit cards How card interest and payments work. https://www.consumerfinance.gov/consumer-tools/credit-cards/
Wikipedia, Amortization calculator Fixed payment formula. https://en.wikipedia.org/wiki/Amortization_calculator