Credit Card Payoff Calculator
The Credit Card Payoff Calculator shows how many months it takes to pay off your card balance at a given monthly payment, along with the total interest. See why paying only the minimum can stretch a balance for decades.
What this means
Credit cards compound interest daily on your balance. If your payment only covers the monthly interest, the balance never shrinks — the 'minimum payment trap' that keeps many people in debt for years.
How we calculate it
Formula
Payoff months = log(PMT / (PMT − P × r)) / log(1 + r) — with P balance, r monthly rate, PMT payment.Worked example
A $5,000 balance at 20% APR with $200 monthly payments:
- 1Monthly rate = 20% / 12 = 1.667%
- 2Payoff months ≈ 34 months (about 2.8 years)
- 3Total interest ≈ $1,780
Important assumptions
- Your payment stays fixed and is applied monthly.
- No new purchases are added to the balance.
- The APR is fixed.
Frequently asked questions
Why is paying the minimum so expensive?
Minimum payments usually cover mostly interest, so the principal falls very slowly. A balance can take decades to clear and cost far more than the original charges.
Should I pay more or transfer the balance?
Paying more is always effective. A 0% balance-transfer offer can help if you clear the balance before the promo ends — watch the transfer fee and the rate that follows.
How do I pay off cards fastest?
Pay more than the minimum every month and target the highest-rate card first. Stop adding new charges so every payment reduces what you owe.