Credit Card Payoff Calculator
A $5,000 credit card balance at 22% APR takes 34 months to pay off at $200 a month, and costs about $1,750 in interest.
Updated · Estimates only, not financial advice
Plan your credit card payoff
Result
This is an estimate. It assumes a fixed interest rate, no new purchases or fees, and interest charged monthly. Card issuers usually charge interest daily on your average balance and may change your rate, so your statement will differ. This is general information, not financial advice.
Quick answer
To pay off a credit card, your monthly payment has to be more than the interest charged each month. Monthly interest is roughly your balance × APR ÷ 12, so a $5,000 balance at 22% APR costs about $91.67 in the first month. Paying $200 a month clears it in 34 months with about $1,750 of interest. Paying $250 clears it in 26 months and saves about $464.
How to use the credit card payoff calculator
- Enter your current balance and the APR from your statement.
- Choose whether you want to pay a set amount each month, or be debt-free within a set number of months.
- Press Calculate to see your payoff date, total interest and a month-by-month schedule.
Credit card payoff formulas
Monthly rate r = APR ÷ 12
Interest this month = balance × r
Months to pay off = −log(1 − r × balance ÷ payment) ÷ log(1 + r)
Payment to finish in n months = balance × r ÷ (1 − (1 + r)−n)
The calculator works month by month, so the last payment is only what’s left, not a full payment.
Worked examples
$5,000 at 22% APR, paying $200 a month
First month’s interest: $5,000 × 0.22 ÷ 12 = $91.67, so $108.33 of the $200 pays down the balance. It takes 34 months and about $1,749.88 in total interest.
$5,000 at 22% APR, debt-free in 24 months
You’d need to pay $259.39 a month, with about $1,225.38 in total interest.
Ways to pay off a card faster
Pay more than the minimum
Minimum payments are often only about 1% to 3% of the balance plus interest, so most of each payment goes to interest. Even a small extra amount each month shortens the payoff time a lot.
Avalanche or snowball
With several cards, the avalanche method puts extra money toward the highest APR first, which saves the most interest. The snowball method clears the smallest balance first, which some people find easier to stick with.
Balance transfers
A 0% balance transfer offer can pause interest for a set period, but transfer fees usually apply and the rate jumps when the offer ends. Run the numbers with the fee added to your balance.
When you’d actually use a credit card payoff calculator
- Setting a realistic payoff goal. See whether you can be debt-free in a year, or what it would take.
- Checking a balance transfer offer. Compare paying the card as it is with moving the balance, fee included.
- Deciding where extra money goes. See how much a bonus or tax refund would cut your payoff time.
How we calculate
Each month, interest is added at APR ÷ 12 and then your payment is subtracted, until the balance reaches zero. The final payment is only the amount left. We assume a fixed APR, no new purchases, no fees and on-time payments. Real cards usually calculate interest daily on your average daily balance, so actual interest can be slightly higher or lower. Figures are rounded to the cent for display.
Frequently asked questions
How long will it take to pay off my credit card?
It depends on your balance, APR and payment. A $5,000 balance at 22% APR takes about 34 months at $200 a month, or 26 months at $250 a month.
How is credit card interest calculated?
Most cards charge interest daily on your average daily balance, using a daily rate of APR ÷ 365. Over a month this is close to balance × APR ÷ 12, which is what this calculator uses.
What happens if I only pay the minimum?
Minimum payments are usually a small percentage of the balance plus interest, so most of the payment goes to interest and the debt can take many years to clear. Paying a fixed amount above the minimum is much faster.
Is it better to pay off the highest interest card first?
Paying the highest APR first (the avalanche method) saves the most interest. Paying the smallest balance first (the snowball method) gives quicker wins, which some people find easier to keep up.
Does a balance transfer help?
A 0% balance transfer can stop interest for a set time, but there's usually a transfer fee of 3% to 5%, and the rate rises when the offer ends. It helps most if you can clear the balance during the 0% period.
Why doesn't my payment reduce the balance?
If your payment is less than or equal to the monthly interest, the balance won't go down. The calculator warns you and shows the minimum needed to make progress.