Credit Card Payoff Calculator

This credit card payoff calculator helps you determine how long it will take to pay off your credit card debt and how much interest you'll pay. Enter your current balance, interest rate, and monthly payment to see your payoff timeline and explore different payment strategies.

How the Credit Card Payoff Calculator Works

The credit card payoff calculator uses the following approach to calculate your payoff timeline:

Monthly Interest Calculation

Monthly Interest = (Current Balance × Annual Interest Rate) ÷ 12

Principal Payment

Principal Payment = Monthly Payment - Monthly Interest

Minimum Payment Calculation (if selected)

Minimum Payment = Greater of ($25 or 1-3% of the balance + interest)

The calculator iteratively applies these calculations month by month until the balance reaches zero, tracking:

  • How much of each payment goes to principal vs. interest
  • The remaining balance after each payment
  • The total time required to pay off the debt
  • The total interest paid over the life of the debt

Making additional payments can significantly reduce both your payoff time and the total interest paid. The calculator shows you exactly how much you can save by increasing your monthly payment amount.

The payment strategies available in this calculator are:

  • Minimum Payment Only: Paying only the minimum required amount each month (typically 1-3% of the balance plus interest)
  • Fixed Monthly Payment: Paying a consistent amount each month until the debt is paid off
  • Accelerated Payoff: Starting with a higher payment and maintaining that payment amount even as the minimum required payment decreases