About the Credit Card Payoff Calculator
Credit card interest compounds on your outstanding balance, so carrying a balance can be expensive and slow to clear if you only make small payments. This calculator shows how long your current payment will take to eliminate the balance and how much interest that costs — or, if you have a target date, what monthly payment gets you there.
How it’s calculated
Months to payoff = −log(1 − (r · B) / M) / log(1 + r), where B is the balance, r is the monthly interest rate (APR ÷ 12), and M is the monthly payment. The payment must exceed the first month's interest (r · B) or the balance never decreases.
Example calculation
A $6,000 balance at 22% APR with $200/month payments takes about 44 months to clear and costs roughly $2,790 in interest. Raising the payment to $350/month cuts it to about 21 months and around $1,270 in interest.
Frequently asked questions
Why does paying only the minimum cost so much?
Minimum payments are often just above the monthly interest charge, so very little goes toward the principal. That stretches repayment over years and multiplies the total interest you pay.
What if my payment is too low?
If your monthly payment is less than the interest charged that month, the balance actually grows and the card is never paid off. The calculator will flag this so you can choose a higher payment.
Should I pay off my highest-interest card first?
Mathematically, paying off the highest-interest debt first (the 'avalanche' method) minimizes total interest. Some people prefer the 'snowball' method — paying the smallest balance first for quick wins and motivation.
This calculator provides estimates for educational purposes and should not be considered financial, tax, or legal advice. Your actual figures may vary with lender terms, fees, and market conditions.