How the credit card payoff calculator works
A credit card balance shrinks only by the part of your payment that is left after interest. The calculator follows your balance one month at a time:
- Interest is added. The monthly rate is your APR divided by 12. At 22% APR that is about 1.833% a month.
- Your payment comes off. First it covers the interest, and the rest pays down the balance.
- Repeat until the balance reaches zero. The last payment is smaller, because it only clears what is left.
You can work in two directions. Enter a fixed monthly payment to see how many months it takes, or enter a target number of months to see the payment you need. Both use the standard loan formulas.
Months to pay off: n = −ln(1 − B × i ÷ P) ÷ ln(1 + i)
Payment for a target: P = B × i ÷ (1 − (1 + i)^−n)
B = balance, P = monthly payment
If your payment is not bigger than the first month’s interest (B × i), the balance never goes down. The calculator warns you when that happens.
The results assume you stop using the card. New purchases add to the balance and push the payoff date back, so treat the card as closed while you pay it down.
Worked example: one card
You owe $5,000 at 22% APR and can pay $200 a month.
- The first month’s interest is $5,000 × 22% ÷ 12 = $91.67. So only $108.33 of your first payment reduces the balance.
- n = −ln(1 − 5,000 × 0.018333 ÷ 200) ÷ ln(1.018333) = 33.6, so it takes 34 payments. The last one is small.
- You pay $1,749.88 of interest, or $6,749.88 in total.
Now say you want the card gone in 24 months instead. The payment is 5,000 × 0.018333 ÷ (1 − 1.018333^−24) = $259.39 a month. The interest drops to $1,225.38. An extra $59 a month saves over $500 and gets you out of debt 10 months sooner.
The minimum payment trap
Minimum payments are designed to keep your account in good standing, not to get you out of debt. They are usually a small percentage of the balance, so they fall as the balance falls. That stretches the debt over many years.
A common formula is 1% of the statement balance plus that month’s interest, with a floor of $25. On the same $5,000 card at 22%:
- The first minimum is 1% of $5,091.67 plus $91.67 of interest, which is $142.58.
- Each month the minimum gets a little smaller, and most of it is still interest.
- Paying only the minimum takes 227 months (18 years 11 months) and costs $7,963.68 in interest. That is more than the $5,000 you borrowed.
Paying a fixed $200 instead clears the card in 34 months and saves $6,213.80 of interest. The key is that a fixed payment does not shrink as the balance falls, so more and more of it pays down the debt.
Minimum payment formulas differ a lot between cards. Here is the same $5,000 at 22% APR under four common formulas, each with a $25 floor:
| Minimum payment formula | First payment | Time to pay off | Total interest |
|---|---|---|---|
| 1% of the balance + interest | $142.58 | 18 years 11 months | $7,963.68 |
| 2% of the balance | $101.83 | 68 years 1 month | $35,957.75 |
| 3% of the balance | $152.75 | 16 years 6 months | $6,718.31 |
| 4% of the balance | $203.67 | 10 years 6 months | $3,799.08 |
A flat 2% minimum barely covers the interest at 22% APR, which is why that row takes almost seven decades. You can enter your own card’s formula under More options. Look for “minimum payment” in your cardholder agreement.
What your statement must show you
In the US, the Credit CARD Act of 2009 added repayment disclosures to every credit card statement. They are set out in Regulation Z, section 1026.7(b)(12), which the Consumer Financial Protection Bureau (CFPB) enforces. Unless an exception applies, your statement must show:
- a “Minimum Payment Warning” that paying only the minimum means paying more interest and taking longer to pay off the balance;
- how long it would take to pay off the balance with minimum payments only, and the total cost;
- the monthly payment that pays the balance off in 36 months, with its total cost and how much you would save.
This calculator shows the same comparison. For our $5,000 example, the 36-month payment is $190.95, with $1,874.28 of interest. Your statement’s figures may be a little different because the issuer uses your card’s exact formula and daily interest.
How much faster bigger payments are
This table shows the same $5,000 balance at 22% APR with different fixed payments. Notice how quickly the interest falls as the payment rises.
| Monthly payment | Time to pay off | Total interest |
|---|---|---|
| $100 | 11 years 5 months | $8,678.06 |
| $150 | 4 years 4 months | $2,798.05 |
| $200 | 2 years 10 months | $1,749.88 |
| $250 | 2 years 2 months | $1,285.72 |
| $300 | 1 year 9 months | $1,021.60 |
| $400 | 1 year 3 months | $731.60 |
| $500 | 1 year | $574.44 |
Going from $100 to $150 a month saves more than $5,800 of interest. The first extra dollars do the most work, because a payment that barely beats the interest leaves almost nothing for the balance.
Paying off several cards
If you have more than one card, switch to Several cards. Enter each card’s balance, APR and minimum payment, and the total you can pay each month. The calculator pays every minimum, then sends the rest to one card at a time. When that card is paid off, its minimum joins the extra for the next card.
You choose the order:
- Highest APR first (the avalanche method). This always costs the least interest.
- Smallest balance first (the snowball method). You clear your first card sooner, which can help you stay motivated.
Example. Three cards: $3,500 at 27.99% (minimum $115), $5,200 at 22.49% (minimum $150) and $1,800 at 19.99% (minimum $50). The minimums add up to $315, and you can pay $600 a month in total.
| Plan | Debt-free in | Total interest | First card cleared |
|---|---|---|---|
| Highest APR first | 22 months | $2,385.60 | Month 10 |
| Smallest balance first | 22 months | $2,542.62 | Month 6 |
| Minimums only | 4 years 9 months | $6,917.87 | Month 54 |
Both orders finish in 22 months here. The avalanche saves about $157 of interest, while the snowball clears the $1,800 card four months earlier. Either one saves more than $4,500 compared with paying only the minimums. The debt payoff calculator does the same for any mix of debts, including loans, and shows payoff dates.
Interest rates in context
Credit cards are among the most expensive kinds of borrowing. The Federal Reserve’s G.19 consumer credit release of 7 October 2026 put the average rate at 22.36% on accounts that were charged interest, and 21.19% across all accounts. Both figures are preliminary for the third quarter of 2026. Many store cards and cards for people rebuilding credit charge more than 29%.
Compare that with typical personal loans, which often charge less for borrowers with good credit. That is why some people move card debt to a cheaper loan. Before you do, check the fees and the real APR with the debt consolidation calculator.
Tips to pay off your card faster
- Pay a fixed amount, not the minimum. Set up an automatic payment for the amount the calculator gives you, and keep it the same even as the balance falls.
- Stop adding to the balance. Use cash or a debit card while you pay the card down.
- Ask for a lower rate. If you have paid on time for a year, call your issuer and ask. Even a few points cut the interest.
- Consider a 0% balance transfer carefully. Add the transfer fee (often 3% to 5%) to the balance, enter 0% APR and the months of the offer, and use Be debt-free by a target. If the balance is not cleared by the end of the offer, the regular APR applies to what is left.
- Pay more than once a month. Interest is charged on your daily balance, so paying part of the amount mid-month trims the interest a little.
- Use windfalls. A tax refund or bonus paid straight to the highest-APR card cuts both time and interest.
Limits of this calculator
Card issuers charge interest daily using a daily periodic rate, usually the APR divided by 365 or 360. They also have grace periods, fees and sometimes several APRs on one card (for purchases, cash advances and promotions). This calculator uses one APR and monthly interest, so real statements will differ by a few dollars. It is for planning, not a quote from your issuer.
If your debt feels unmanageable, the FTC’s guide on how to get out of debt explains your options, including nonprofit credit counseling. To see how your debts compare with your income, try the debt-to-income ratio calculator.