Credit Card Payoff Calculator

Minimum payments are designed to keep a balance alive for years. Enter your balance and APR to compare two paths: a fixed monthly payment you choose, or the typical minimum-payment schedule (a percent of the balance with a dollar floor).

Results

Assumptions: No new charges, no fees, and a constant APR for the whole payoff period.

Formula

Each month the balance first accrues interest, then your payment lands:
Balance → Balance × (1 + APR ÷ 12) − Payment
The calculator repeats this month by month until the balance reaches zero.

How to use this calculator

  1. Enter the balance and APR from your statement.
  2. Choose a fixed payment or the minimum-payment schedule.
  3. Fill in the payment details for that mode, then Calculate.
Credit Card Payoff Calculator — how the calculation works, illustrated$
Credit Card Payoff Calculator — how the calculation works, illustrated

Worked example

A $3,000 balance at 18% APR with a fixed $150 payment.

  1. First month’s interest: 3,000 × 1.5% = $45 — the payment covers it comfortably.
  2. Month by month simulation reaches zero in the 24th month.

Result: Debt-free in about 24 months, with roughly $595 of interest along the way.

Frequently asked questions

Why do minimum payments take so long?

Because the minimum shrinks as the balance falls — often just covering interest plus a sliver of principal. On typical terms, minimum-only payments can stretch a modest balance past a decade and double its cost.

What if my payment is lower than the monthly interest?

The balance grows instead of shrinking — negative amortization. The calculator flags this instead of pretending the debt gets paid off.

Does this assume I stop using the card?

Yes. New charges would add to the balance every month and extend the payoff. The math assumes the balance only goes down.

Related calculators