Credit Card Payoff Calculator
See how long it takes to become debt-free and how much interest you will pay.
Months to Pay Off
2y 10m
34 months total
Total Interest
$1,750
35.0% of principal
Total Paid
$6,800
$5,050 principal
APR
22%
$91.67/mo interest
| Item | Amount |
|---|---|
| Starting Balance | $5,000 |
| Monthly Payment | $200 |
| Total Interest Paid | +$1,750 |
| Total Paid | $6,800 |
| Time to Pay Off | 2 years 10 months |
How This Is Calculated
This calculator uses the standard amortization formula applied to credit card debt. Each month, interest accrues on the remaining balance at the monthly rate (APR ÷ 12), and your payment reduces the principal. The calculation iterates month by month until the balance reaches zero.
Monthly interest = remaining balance × (APR ÷ 12). If your payment does not exceed the monthly interest charge, the balance will never decrease. This calculator warns you if your payment is too low to pay off the debt.
Key insight: Credit card interest compounds daily in practice, but this calculator uses monthly compounding for simplicity. The actual payoff timeline may be slightly different depending on your card's specific terms and grace period.
Standard amortization model. Monthly compounding (APR ÷ 12 per month). Does not account for late fees, penalty APRs, or new purchases.
Frequently Asked Questions
Should I pay the minimum or more on my credit card?
Paying only the minimum keeps you in debt for years and costs thousands in interest. For example, a $5,000 balance at 20% APR with $100 minimum payments takes over 9 years to pay off and costs over $6,000 in interest alone. Paying even $50 more per month cuts the timeline roughly in half.
What is the debt snowball method?
The debt snowball method pays off debts from smallest to largest balance regardless of interest rate. You make minimum payments on all debts and put extra money toward the smallest balance. Once it is paid off, you roll that payment into the next smallest debt. This provides quick psychological wins that help maintain motivation.
What is the debt avalanche method?
The debt avalanche method pays off debts from highest to lowest interest rate. You make minimum payments on all debts and put extra money toward the highest-rate debt first. This method saves the most money in total interest paid, but may take longer to see your first paid-off debt.
What happens if I only pay the minimum every month?
Most credit card minimums are 1-3% of the balance or $25, whichever is higher. At this rate, a $5,000 balance at 18% APR takes about 20+ years to pay off and costs over $7,000 in interest. The minimum payment barely covers interest, so the principal decreases very slowly.
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⚠️ Estimates only. Actual payoff terms depend on your card agreement, fees, and payment behavior. Consult a financial advisor for debt management strategies.