How to use the credit card payoff calculator
Enter the balance on the card and its purchase APR, both shown on your monthly statement. Then choose:
- Time to pay off — enter the fixed amount you can pay each month to see how many months it takes and how much interest you pay on the way.
- Payment needed — enter a target, such as 24 months, to see the fixed payment that clears the balance by then.
If you keep using the card, add your typical new charges per month. They are added to the balance every month, so your payment has to cover them as well as the interest before it reduces the debt.
The result also shows what would happen if you paid only an example minimum payment each month, so you can see how much a fixed plan saves. Unlike the loan calculator, which assumes a fixed term set by a lender, this calculator starts from what you choose to pay on a revolving balance.
How payoff time and payment are calculated
Each month the calculator charges interest on the balance at the monthly rate, adds any new charges, and subtracts your payment. With no new charges, the number of months has a closed form:
n = −ln(1 − B × r ÷ P) ÷ ln(1 + r)
and the payment needed to finish in n months is the standard level payment:
P = B × r ÷ (1 − (1 + r)⁻ⁿ)
- B
- starting balance
- r
- monthly rate: APR ÷ 12, as a decimal (22% → 0.018333)
- P
- monthly payment (minus new charges, if any)
- n
- number of months
If P is not larger than B × r — the first month’s interest — the balance never falls, and the calculator tells you so. The schedule is simulated month by month with interest rounded to the cent, and the final payment is just what is left.
How cards really charge interest. Many issuers divide the APR by 360 or 365 to get a daily periodic rate and apply it to your average daily balance, compounding daily. Using APR ÷ 12 on the monthly balance gives a close estimate, but your statements will differ by small amounts, and paying earlier in the cycle lowers the real interest a little.
Worked example
You owe $6,000 on a card with a 22% APR, make no new purchases and pay $250 a month.
- Monthly rate: 22% ÷ 12 = 1.8333%, so the first month’s interest is $6,000 × 0.018333 = $110.00
- Months: −ln(1 − 6,000 × 0.018333 ÷ 250) ÷ ln(1.018333) = 31.9, so 32 payments (2 years 8 months), the last one $229.05
- Total interest: $1,979.05
To be debt-free in 24 months instead, you would need to pay $311.27 a month, and the interest falls to $1,470.47.
With the example minimum payment (interest plus 1% of the balance, at least $35), the first payment is $110.00 + $61.10 = $171.10. Paying only that minimum takes 17 years 8 months and costs $9,348.83 in interest — $7,369.78 more than the $250 plan.
About minimum payments
Card issuers set their own minimum payment formulas. The CFPB’s 2025 review of the credit card market found that most set the minimum at 1% of the balance with interest and fees added on top, subject to a fixed dollar floor; the report’s own illustration uses the greater of interest plus 1% of the balance or $35, which is the example used here. Because the minimum shrinks as the balance shrinks, paying only the minimum stretches the debt out for years.
Your monthly statement must show how long paying only the minimum would take and what it would cost, using your card’s actual formula. Check it against the example here.
- Stop adding to the balance. New charges have to be paid off before your payment reduces the old debt. With steady new spending, a minimum-only plan may never finish, because the minimum shrinks until it only covers the interest and the new charges.
- Pay the highest rate first. With several cards, extra money on the highest-APR balance saves the most interest.
- Promotional rates end. A 0% balance transfer only helps if the balance is cleared, or mostly cleared, before the promotional rate expires. Enter the rate that will apply afterwards to see the risk.
Where the money could go instead
Once the card is paid off, the same monthly amount can build savings. The savings calculator shows what it grows to.
Frequently asked questions
How long will it take to pay off my credit card?
It depends on the balance, the APR and your payment. For example, $6,000 at 22% APR takes 32 months at $250 a month with no new charges. Enter your own numbers above; the payment must be larger than the first month’s interest or the balance never goes down.
How much should I pay to clear my card in two years?
Choose Payment needed and enter 24 months. For a $6,000 balance at 22% APR, the payment is $311.27 a month, with $1,470.47 of interest in total.
Why does paying the minimum take so long?
Minimum payments are usually a small percentage of the balance plus that month’s interest, so they fall as the balance falls. Only a small slice of each payment reduces the debt, and interest keeps being charged on what is left.
Why is my actual interest different from the calculator?
Most cards apply a daily periodic rate (APR divided by 360 or 365) to the average daily balance, and billing cycles vary in length. The calculator uses APR divided by 12 on the monthly balance, which is close but not identical.
Does paying more than the minimum really make a difference?
Yes. In the example above, paying $250 a month instead of the example minimum saves $7,369.78 in interest and finishes 15 years sooner. Any amount above the minimum goes straight to reducing the balance.
Sources
Last reviewed September 19, 2026