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Credit Card Payoff Calculator

Credit card payoff time depends on three variables: the outstanding balance, the annual percentage rate (APR), and the monthly payment amount. The interest that accrues each month equals the remaining balance multiplied by the monthly rate (APR / 12). Paying more than the minimum reduces the balance faster, which lowers the interest charge in every subsequent month. For example, a $5,000 balance at 22% APR with $200 monthly payments takes approximately 32 months to pay off, with an estimated $1,382 in total interest. Making only minimum payments (2% of balance, $25 floor) on the same debt takes approximately 157 months and costs an estimated $5,752 in interest. Enter your credit card details below to compare fixed payments against minimum payments and see the estimated savings.

Quick Answer

A $5,000 credit card balance at 22% APR with $200 monthly payments takes approximately 32 months to pay off, with estimated total interest of approximately $1,382.

Common Examples

Input Result
$5,000 balance, 22% APR, $200/month Estimated 32 months, approximately $1,382 total interest
$10,000 balance, 19.99% APR, $300/month Estimated 44 months, approximately $3,167 total interest
$3,000 balance, 24.99% APR, $150/month Estimated 25 months, approximately $654 total interest
$8,000 balance, 18% APR, $400/month Estimated 23 months, approximately $1,195 total interest
$15,000 balance, 21% APR, $500/month Estimated 39 months, approximately $4,499 total interest

How It Works

This calculator uses a month-by-month simulation to project credit card payoff. Each month, it applies the following steps:

  1. Calculate interest: Monthly Interest = Remaining Balance x (APR / 12 / 100)
  2. Apply payment: New Balance = Remaining Balance + Interest - Monthly Payment
  3. Repeat until the balance reaches zero

The simulation runs twice: once with your fixed monthly payment, and once using the minimum payment method (2% of the remaining balance or $25, whichever is greater). The difference between the two projections reveals the estimated time and interest savings from paying a fixed amount.

For the minimum payment scenario, the payment amount decreases as the balance decreases, which is why minimum payments result in a much longer payoff period and significantly more total interest.

If the monthly payment does not exceed the first month’s interest charge, the balance will never decrease. The calculator detects this condition and displays a warning.

Worked Example

For a $5,000 balance at 22% APR with a $200 monthly payment:

Month 1: Interest = $5,000 x (0.22 / 12) = $91.67. Payment applied to principal = $200 - $91.67 = $108.33. New balance = $4,891.67.

Month 2: Interest = $4,891.67 x 0.01833 = $89.68. Principal paid = $200 - $89.68 = $110.32. New balance = $4,781.35.

This process continues for approximately 32 months until the balance reaches zero. Estimated total paid is approximately $6,382, with approximately $1,382 going to interest.

For comparison, minimum payments (2% of balance, $25 floor) on the same $5,000 at 22% APR would take approximately 157 months (over 13 years) and cost an estimated $5,752 in interest. Paying the fixed $200/month saves approximately $4,370 in interest and pays off the debt roughly 125 months sooner.

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Frequently Asked Questions

How are credit card minimum payments calculated?
Most credit card issuers set the minimum payment as a percentage of the outstanding balance (typically 1% to 3%) or a fixed dollar amount (typically $25 to $35), whichever is greater. This calculator uses 2% of the balance with a $25 floor, which is a common industry standard. Check your card agreement for your specific minimum payment terms.
Why does paying only minimums cost so much more in interest?
Minimum payments decrease as the balance decreases. In the early months, most of the minimum payment goes toward interest rather than principal. As the balance drops, so does the minimum payment, which means the debt is paid down very slowly. A fixed payment amount ensures consistent principal reduction each month.
What if my monthly payment does not cover the interest?
If your payment is less than or equal to the monthly interest charge, the balance will grow instead of shrink. This is sometimes called negative amortization. The calculator will display a warning if this situation is detected. Increasing the payment above the monthly interest amount is necessary to reduce the balance.
Does this account for new purchases on the card?
No. This calculator assumes no additional charges are made to the card. Adding new purchases increases the balance and extends the payoff timeline. For accurate projections, stop using the card while paying it off, or add your expected monthly charges to the balance manually.
How accurate are these estimates?
The calculations simulate month-by-month repayment using standard fixed-rate assumptions and are mathematically accurate for the inputs provided. Actual results may vary due to payment timing, promotional APR periods, penalty rates, fees, or changes in the APR. This is an estimate for informational purposes only.