How to use the credit card payoff calculator
- Choose whether to set a monthly payment or a payoff time in months.
- Enter your card’s balance and APR.
- Enter the payment you can make each month, or the number of months you want to be debt-free in.
You’ll see your debt-free date, the total interest and the total you’ll pay, plus how much your plan saves compared with minimum payments. The chart shows the balance falling month by month.
How credit card interest is calculated
The calculator charges one-twelfth of your APR on the balance each month: interest = balance × APR ÷ 12. Your payment covers that interest first, and only the rest lowers the balance. If the payment is smaller than the month’s interest, the balance never goes down.
Card issuers usually charge interest daily on your average daily balance, so your statement may differ slightly. The minimum payment in the comparison is the greater of $25 or 1% of the balance plus that month’s interest, a common formula; your card’s may differ.
Example: $6,000 at 22.9% APR
| Monthly payment | Time to pay off | Total interest | Total paid |
|---|---|---|---|
| Minimum payment (starts at $174.50) | 20 years 10 months | $10,362 | $16,362 |
| $150 | 6 years 5 months | $5,435 | $11,435 |
| $250 | 2 years 9 months | $2,101 | $8,101 |
| $400 | 1 year 6 months | $1,136 | $7,136 |
| $500 | 1 year 2 months | $880 | $6,880 |
Paying $250 a month instead of the minimum saves about $8,261 in interest and makes you debt-free about 18 years sooner. To be debt-free in two years, you’d need to pay $313.94 a month.
Ways to pay off credit card debt faster
- Stop adding new charges to the card while you pay it down.
- Pay more than the minimum, even a little. In the example, $114.50 of the first $174.50 minimum payment is interest.
- Pick an order for several cards. The avalanche method pays off the highest APR first; the snowball method, the smallest balance. Our snowball vs. avalanche guide compares them.
- Consider a 0% balance transfer. Moving $6,000 to a card with an 18-month 0% intro APR means $333.33 a month clears it without interest, though a transfer fee of around 3% to 5% ($180 to $300 here) usually applies.
- Ask your issuer for a lower APR. Some lower the rate for customers with a good payment history.
- Look at a consolidation loan. A personal loan at a lower fixed rate can help, as long as you don’t run the cards back up.
How paying down cards helps your credit
Credit utilization, the share of your available credit that you’re using, is a major part of credit scores. Paying balances down lowers it. Our guide to credit scores explains the other factors.
Frequently asked questions
How long will it take to pay off my credit card?
It depends on the balance, the APR and your payment. At 22.9% APR, $250 a month pays off $6,000 in 33 months. Enter your own numbers to see your date.
Why does paying the minimum take so long?
Minimum payments are mostly interest, and they shrink as the balance falls, so very little goes toward the debt. In the example, minimum payments take almost 21 years and cost more in interest than the original balance.
How do card issuers calculate interest?
Most charge interest daily: the APR ÷ 365, applied to your average daily balance over the billing cycle. If you pay the full statement balance by the due date, most cards charge no interest on purchases.
Should I use savings to pay off my credit card?
It often makes sense, because card interest usually costs far more than savings earn. Many people keep a small emergency fund first, so a surprise expense doesn’t go back on the card.
Is a balance transfer worth it?
It can be, if you can clear the balance before the 0% period ends and the fee is smaller than the interest you’d save. After the intro period, the card’s regular APR applies to anything left.
Related calculators and guides
Estimates assume a fixed APR, no new charges and no fees. Your issuer’s interest and minimum payment rules may differ.