Debt
Credit card payoff calculator
Enter your balance, APR and payment plan to see your payoff time, total interest and how much a fixed payment saves versus paying only the minimum.
Some inputs need attention. The results below are from your last valid entries.
Assumptions
Assumes a constant APR, no new charges, fees or promotional rates, and that each month's interest is APR divided by 12 on the balance. Minimum payment rules vary by issuer.
Remaining card balance by year
| Year | Paid | Interest | Ending balance |
|---|---|---|---|
| 1 | $3,000 | $1,192 | $4,192 |
| 2 | $3,000 | $731.63 | $1,924 |
| 3 | $2,101 | $177.14 | $0 |
Why card debt lingers
Credit card interest is charged monthly on what you still owe, and minimum payments are designed to be small. When most of each payment goes to interest, the balance falls slowly, which is why paying only the minimum can stretch a modest balance across many years and cost a large share of the original amount in interest.
Methodology
Each month the interest is balance × APR ÷ 12. Then your payment is applied, never more than the balance plus interest, and the process repeats until the balance reaches zero. With a fixed payment P, the payoff time is roughly n = −ln(1 − r·B/P) / ln(1 + r), rounded up. The minimum schedule uses the larger of your floor and a percentage of the current balance plus that month’s interest, so the payment shrinks as the balance does. If a payment does not exceed the first month’s interest, the calculator shows a warning instead of a result because the balance would never fall. New purchases, fees and promotional rates are not modeled.
How to use the comparison
Choose the fixed-payment plan and compare its time and interest with the minimum-only figures. Even a small step up in payment can cut years off. A steady payment that stays the same as the balance falls is a simple habit that speeds things along.
Related steps
- Have more than one debt? Compare strategies in the debt payoff calculator and our snowball vs avalanche guide.
- Build a cash cushion so emergencies do not go back on the card with the emergency fund calculator.
Frequently asked questions
Why does the calculator show a warning about my payment?
If your payment is no larger than the interest charged in the first month, the balance would not decline and the debt would never be paid off. Raise the payment above the interest amount.
How are minimum payments calculated?
Formulas vary by issuer, often about 1% of the balance plus interest and fees, with a dollar floor. Enter the percentage and floor from your card agreement to model it.
Does a balance transfer or 0% offer change this?
Yes, promotional rates change the math, but they are not modeled here. Transfer fees and the rate after the promotion ends matter, so run the numbers with the fee added to the balance.
Do new purchases affect the payoff?
Yes. This calculator assumes you stop using the card. New charges would increase the balance and delay the payoff date.
This calculator is for education and illustration. It does not account for taxes, fees or your personal situation unless stated, and is not financial advice.
Related tools
Auto Loan Calculator
Estimate your monthly car payment, sales tax, total interest and total cost from price, down payment, trade-in, APR and loan term.
DebtDebt Payoff Calculator
Compare the avalanche and snowball methods, see your debt-free date and how much interest an extra monthly payment saves.
DebtLoan Payment Calculator
Calculate the monthly payment on an auto, personal or other fixed-rate loan, and see how extra payments cut your interest and payoff time.