Credit Card Payoff Calculator
Enter your balance, APR, and monthly payment to see exactly how long it will take to pay off one credit card, and how much interest you'll pay along the way.
Your Credit Card
How credit card payoff is calculated
Credit card debt is one of the most expensive types of consumer debt because interest compounds — you're charged interest not only on your original spending, but eventually on unpaid interest too. Each billing cycle, your card issuer calculates a finance charge based on your balance and APR, adds it to what you owe, and your next payment first covers that interest before any of it reduces your principal.
The formula
Principal reduction = Payment − Monthly interest
New balance = Balance − Principal reduction
This calculator repeats that calculation month by month until your balance reaches zero, giving you an accurate payoff timeline and total interest cost — the same underlying math your card issuer uses, simplified to monthly compounding for clarity.
Why a small payment increase matters so much
Early in payoff, a large share of every payment goes to interest, not principal — especially at high APRs. Raising your monthly payment by even $25–$50 shifts a much bigger share toward principal immediately, which snowballs into large reductions in both total interest and total payoff time. Try adjusting the payment field above and watch how much the "total interest paid" figure drops.
Tips to pay off your card faster
- Pay more than the minimum — see our Minimum Payment Calculator to understand exactly how expensive minimum-only payments really are.
- Stop new charges on the card you're paying down so your balance only moves in one direction.
- Check for a lower rate — a balance transfer to a 0% promotional APR card can eliminate interest entirely for a limited period.
- Pay twice a month if your issuer allows it, to reduce your average daily balance and the interest that accrues on it.
Frequently Asked Questions
Most credit card issuers charge interest based on your average daily balance, compounded daily, then billed once a month. This calculator simplifies that into an equivalent monthly compounding model — interest equals your balance multiplied by the APR divided by 12 — which closely approximates real statements for planning purposes.
Minimum payments are often set low enough that most of the payment covers interest, leaving very little to reduce your actual balance. Even a modest increase in your monthly payment can dramatically shrink the portion going to interest and cut years off your payoff timeline.
It means your monthly payment is less than or equal to the interest accruing each month, so your balance will never shrink and can even grow. You need to increase your payment above the monthly interest charge for any progress to occur.
Always pay in full each month if you can — that avoids interest entirely. This calculator is for balances you're carrying and paying down over time, to help you understand and plan around the timeline and cost.