Credit Card Payoff Calculator
Find out how long it will take to pay off your credit card balance — and how much interest you'll pay.
*Minimum-only scenario assumes a typical minimum of 2% of the remaining balance (or $25, whichever is greater), recalculated each month as the balance falls.
How this credit card payoff calculator works
Credit cards charge interest on your remaining balance every month, compounding as unpaid interest gets added to what you owe. This calculator simulates your balance month by month at your card's APR, applying your planned fixed monthly payment until the balance reaches zero, and separately models the much slower "minimum payment only" scenario so you can see exactly how much a fixed, higher payment saves you.
Why minimum payments are so costly
Minimum payments are typically calculated as a small percentage of your balance (often around 1–3%, or a flat minimum like $25, whichever is greater) — and as your balance shrinks, so does your minimum payment, which dramatically stretches out the payoff timeline and lets interest accumulate for years. Committing to a fixed, higher payment amount instead keeps the payment constant even as the balance falls, paying it off far faster.
What to do if your payment doesn't cover interest
If your planned monthly payment is less than the interest charged that month, your balance will actually grow over time no matter how long you pay — the calculator will warn you if this is the case. In that situation, increasing your payment (even by a modest amount) or looking into a lower-rate balance transfer or debt consolidation loan can help.
Frequently asked questions
How is credit card interest actually calculated?
Most issuers calculate interest daily based on your average daily balance and your card's APR divided by 365, then bill that accumulated interest at the end of your statement period — this calculator simplifies that to an equivalent monthly rate (APR ÷ 12) for clarity.
What's a balance transfer and could it help?
A balance transfer moves your balance to a new card, often with a promotional 0% APR period, which can dramatically reduce interest if you pay it off before the promo ends — factor in any transfer fee (commonly 3–5% of the balance) when deciding.
Should I pay off my credit card or invest instead?
Credit card APRs (often 18–29%) are almost always far higher than realistic investment returns, so paying off high-interest credit card debt is usually the better financial move before investing extra money.
Does closing a paid-off card hurt my credit?
It can, since it may reduce your total available credit and shorten your average account age, both of which factor into your credit score. Many people keep a paid-off card open (unused or for small recurring charges) instead of closing it.