Credit Card Payoff Calculator
See how long it will take to pay off your credit card and how much interest you will pay with a fixed monthly payment, or the payment you need to be debt-free in a set number of months.
Result
Why card debt is so expensive
Credit card APRs often run above 20%. With small payments, much of each payment goes to interest and the balance barely moves. A $5,000 balance at 22% APR with $200 a month takes almost 3 years to clear and costs about $1,750 in interest.
The minimum payment trap
Minimum payments are designed to keep you in debt for years. Paying $100 a month on the same $5,000 balance takes more than 11 years and costs over $8,600 in interest. If your payment does not exceed the monthly interest, the balance never goes down.
Ways to pay it off faster
Pay as much above the minimum as you can, since every extra dollar goes to principal. With several cards, target the highest APR first (the avalanche method) to save the most interest. A 0% balance transfer or a lower-rate personal loan can also help if you avoid new charges.
Related guide: How to Pay Off Credit Card Debt Faster
Frequently asked questions
How is credit card interest calculated?
Most issuers charge interest daily on your average daily balance. This calculator uses monthly compounding, which gives a very close estimate.
Avalanche or snowball?
The avalanche method pays the highest-rate card first and saves the most money. The snowball method pays the smallest balance first for quick wins. Both work if you stick with them.
Does a balance transfer make sense?
It can, if the promotional rate lasts long enough to pay the balance and the transfer fee, usually 3% to 5%, is lower than the interest you would save.
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Results are estimates for informational purposes only and are not financial, tax, legal or medical advice.