Credit Card Payoff Calculator
Calculate how long it will take to pay off your credit card balance and how much total interest you will pay.
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What Is a Credit Card Payoff Calculator?
A credit card payoff calculator shows you exactly how long it will take to eliminate your credit card debt and how much interest you will pay along the way. Credit card interest rates are among the highest of any consumer debt, often ranging from 15% to 30% APR. Without a clear plan, minimum payments can keep you in debt for decades. This calculator cuts through the uncertainty and gives you a concrete timeline.
The mathematics of credit card debt work heavily against the cardholder. When you make only the minimum payment, the majority goes toward interest charges rather than reducing your principal balance. A $5,000 balance at 20% APR with minimum payments could take over 25 years to pay off and cost more than $8,000 in interest alone. This calculator shows you how increasing your payment — even by a modest amount — dramatically reduces both the payoff time and total interest.
Use this tool to create a debt payoff strategy. Enter different monthly payment amounts to see how each affects your timeline. Compare the cost of your current payment plan against a more aggressive approach. If you have multiple credit cards, run the numbers on each to decide which card to prioritise — typically the one with the highest interest rate first.
How Do You Use This Credit Card Payoff Calculator?
Enter your current credit card balance, annual interest rate (APR), and monthly payment amount. Click Calculate to see the number of months to pay off the balance, total interest paid, and total amount paid.
- Enter your current credit card balance (total amount owed).
- Input the annual interest rate (APR) on your credit card.
- Set the monthly payment amount you plan to make.
- Click Calculate to see the payoff timeline and total interest cost.
- Try increasing the monthly payment to see how it reduces the payoff time.
- Compare different payment strategies to find the approach that works best for your budget.
How Does the Credit Card Payoff Calculator Formula Work?
The formula used: N = -log(1 - (B × r / PMT)) / log(1 + r) where B = balance, r = monthly rate, PMT = monthly payment, N = number of months
The payoff formula calculates the number of months needed to eliminate a credit card balance based on a fixed monthly payment and the card's interest rate.
N = -log(1 - (B × r / PMT)) / log(1 + r)
B is the current card balance. r is the monthly interest rate (APR divided by 12). PMT is the fixed monthly payment. N is the number of months to pay off the balance. The total interest paid equals (PMT × N) - B. Note: the monthly payment must exceed the monthly interest charge (B × r), otherwise the balance will never be paid off.
What Are Some Example Calculations?
With a $5,000 balance at 19.9% APR and $150/month payments: It takes 44 months to pay off. Total interest = $1,554. Total paid = $6,554.
Moderate balance: $3,000 at 22% APR, paying $100/month
r = 0.22/12 = 0.01833. N = -log(1 - (3000 × 0.01833 / 100)) / log(1.01833)
Payoff time = 39 months (3 years 3 months). Total interest = $876. Total paid = $3,876.
High balance: £8,000 at 18.9% APR, paying £200/month
r = 0.189/12 = 0.01575. N = -log(1 - (8000 × 0.01575 / 200)) / log(1.01575)
Payoff time = 56 months (4 years 8 months). Total interest = £3,131. Total paid = £11,131.
Aggressive payoff: €2,500 at 24% APR, paying €300/month
r = 0.24/12 = 0.02. N = -log(1 - (2500 × 0.02 / 300)) / log(1.02)
Payoff time = 9 months. Total interest = €227. Total paid = €2,727.
When Should You Use a Credit Card Payoff Calculator?
Use this calculator whenever you carry a credit card balance you want to eliminate. It is essential for creating a realistic debt payoff plan with a clear end date. Run the numbers to see the true cost of carrying a balance — the total interest figure is often a powerful motivator to increase payments.
The calculator is also useful when deciding between financial strategies. For example, should you put extra money toward your credit card or into savings? If your card charges 22% APR and your savings account earns 4%, paying down the card is a guaranteed 22% return. Use the calculator to quantify exactly how much you save by accelerating your payments.
What Do These Terms Mean?
What Are the Best Tips to Know?
- Pay more than the minimum every month — even an extra 50 in currency units can shave years off your payoff timeline.
- Focus on the highest-interest card first (the avalanche method) to minimise total interest paid across all cards.
- Consider a 0% balance transfer card if available, but factor in any transfer fees and pay off the balance before the promotional rate ends.
- Stop using the card while you are paying it off — adding new charges extends the payoff time and increases interest costs.
- Set up automatic payments for at least the minimum amount to avoid late fees and credit score damage.
What Mistakes Should You Avoid?
- Making only the minimum payment, which is designed to keep you in debt as long as possible and maximise interest charges.
- Forgetting that the APR is annual — divide by 12 for the monthly rate used in calculations.
- Continuing to charge new purchases to the card while trying to pay it off, effectively cancelling your progress.
- Ignoring the balance after making a large payment and assuming the rest will take care of itself.
Frequently Asked Questions
How long will it take to pay off my credit card?
It depends on your balance, interest rate, and monthly payment. Use this calculator to get an exact answer. As a general rule, minimum payments can take 15-30 years to clear a balance, while doubling your payment can reduce that to 2-4 years.
How much interest will I pay on my credit card?
Total interest depends on your balance, APR, and how quickly you pay. On a $5,000 balance at 20% APR with $100/month payments, you would pay approximately $3,600 in interest over 86 months. Increasing payments to $200/month drops interest to about $1,100.
Should I pay off the highest interest card first or the smallest balance?
Mathematically, paying the highest interest rate first (avalanche method) saves the most money. However, the snowball method (smallest balance first) provides quicker wins that keep you motivated. Choose the approach that you will stick with consistently.
What happens if I only pay the minimum on my credit card?
Minimum payments are designed to keep you in debt for as long as possible. On a $5,000 balance at 20% APR, minimum payments of 2% could take over 25 years and cost more than the original balance in interest alone.
Is a balance transfer worth it?
A balance transfer to a 0% APR card can save significant interest if you pay off the full balance within the promotional period. Factor in the transfer fee (typically 2-5% of the balance) and have a plan to clear the debt before the regular rate kicks in.
How does my credit card payment affect my credit score?
Payment history is the largest factor in credit scores. Paying at least the minimum on time every month protects your score. Reducing your credit utilisation (the percentage of your credit limit you are using) below 30% can boost your score further.
Can I negotiate a lower interest rate on my credit card?
Yes. Call your card issuer and ask for a rate reduction, especially if you have a good payment history or have received offers from competitors. Even a small rate reduction saves money on a large balance.
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