You will be debt-free in
0 months
Your monthly payment must be larger than the interest charged each month, otherwise the balance never shrinks. Enter a balance above zero and a higher payment.
Total interest
Total you will pay
0.00If you paid only the minimum each month
Estimates only. The minimum payment is assumed to be the monthly interest plus 1% of the balance, with a floor of 25. Your card issuer’s rule may differ. New purchases and fees are not included.
How this credit card payoff calculator works
Enter your card balance, its yearly interest rate (APR) and how much you plan to pay each month. The calculator shows when the card will be paid off, how much interest you will pay, and how that compares with paying only the minimum.
How credit card interest works
Credit card interest is charged on your remaining balance, usually calculated daily and added monthly. This calculator uses one twelfth of the APR each month, which gives a close estimate. Each payment first covers the interest, and only what is left reduces the balance.
Example
You owe 5,000 at 22% APR. If you pay 200 a month, you will be debt-free in 34 months (2 years and 10 months) and pay about 1,750 in interest. If you paid only the minimum, which starts at about 142 and shrinks as the balance falls, it would take about 19 years and cost roughly 8,100 in interest. That is a difference of about 6,350.
Why minimum payments are so expensive
The minimum is designed to be small. As your balance falls, the required payment falls too, so most of each payment goes to interest for years. Paying a fixed amount, even one only slightly above the first minimum, keeps the payment steady and finishes the debt much sooner.
Ways to pay off a credit card faster
- Pay a fixed amount every month. Do not let the payment shrink as the balance goes down.
- Stop using the card while you pay it off. New purchases add to the balance you are trying to reduce.
- Look at balance transfer offers. A card with a low or zero introductory rate can save interest, but check the transfer fee and when the offer ends.
- Ask for a lower rate. Some issuers will reduce your APR if you have a good payment history.
Frequently asked questions
What is APR on a credit card?
APR is the yearly interest rate you pay on unpaid balances. Divide it by 12 to estimate the monthly rate. Many cards have APRs above 20%.
Do I pay interest if I pay the full balance each month?
Usually not on purchases, thanks to the grace period. Interest applies when you carry a balance from one month to the next.
Should I pay off a card or save first?
A small emergency fund helps you avoid using the card for surprise bills. After that, high-interest card debt is usually worth paying off quickly.