Credit Card Payoff Calculator
Calculate how long it takes to pay off credit card debt. Compare minimum payments vs. a fixed plan and see total interest, debt-free date, and savings.
How It Works
Simulates credit card balance paydown month by month. Minimum payments typically cover interest plus a small principal slice; fixed payments pay a set amount until the balance reaches zero.
Formula
Monthly Interest = Balance × (APR / 12)
Principal Paid = Monthly Payment - Monthly Interest
New Balance = Balance - Principal Paid
Each month, interest is calculated on the remaining balance. The rest of your payment reduces the principal.
Worked Example
Paying off $5,000 at 20% APR
- Balance: $5,000, APR: 20%
- Month 1 Interest: $5,000 × (0.20 / 12) = $83.33
- If you pay $200, $83.33 goes to interest, $116.67 to principal.
- New Balance: $4,883.33
- Repeat until balance is $0 (takes 33 months, total interest $1,595).
Common Mistakes
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Only paying the minimum
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Minimum payments often cover mostly interest, keeping you in debt for years.
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Still using the card while paying it off
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Stop using the card. New charges accrue interest immediately because you lose the grace period.
Frequently Asked Questions
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DisclaimerThe results provided by this calculator are estimates and for informational purposes only. They do not constitute financial, legal, or professional advice. Please consult with a qualified professional for your specific needs.