Credit card payoff calculator
How long a card balance takes to clear, what it costs in interest, and the payment that clears it by your date.
Result
- Debt-free in
- 3 years 1 month
- Balance today
- $6,500.00
- Interest you will pay
- $2,566.36
- Total paid
- $9,066.36
- Interest in the first month
- $124.04
How this was calculated
Monthly rate
APR ÷ 12
22.9% ÷ 12 = 1.9083% a month
Months to pay off
n = −ln(1 − r × B ÷ P) ÷ ln(1 + r), rounded up
$6,500.00 at $250.00 a month → 37 payments
Interest
Total paid − balance
$9,066.36 − $6,500.00 = $2,566.36
What this calculation assumes
- Interest is charged monthly at APR ÷ 12 on the balance, and no new purchases are added. Card issuers compound daily, so real interest can be slightly higher.
- A minimum payment that only just covers the interest keeps the balance almost unchanged. Paying more than the minimum is what shortens the time.
- Late fees, a penalty APR or a 0% balance transfer change the result; check your card statement.
Estimates for information only. They are not financial advice, a loan offer or a guarantee of any return, rate or approval. Lenders and providers calculate with their own terms; check yours before you decide.
Why the minimum payment takes so long
A card at 22.9% APR charges about 1.9% of the balance every month. On $6,500 that is $124 of interest in the first month, so a $150 payment only reduces the balance by $26. Most of every early payment goes to interest, which is why minimum payments can take decades.
Raise the payment to $250 and the same balance is gone in 37 months with about $2,566 of interest. The extra $100 a month does far more than its size suggests, because it all goes to the balance.
How the months are counted
n = −ln(1 − r × B ÷ P) ÷ ln(1 + r)
B is the balance, P the monthly payment and r the APR divided by 12. If r × B is equal to or larger than P, the payment never covers the interest and the balance never falls; the calculator tells you the smallest payment that makes progress.
To be debt-free by a date instead, the payment is P = B × r ÷ (1 − (1 + r)^−n), the same formula as a loan.
Paying off more than one card
Pay the minimum on every card and put any extra toward one. Choosing the highest rate first (the avalanche method) costs the least interest; choosing the smallest balance first (the snowball method) clears a card sooner, which some people find easier to stick to.
Questions people ask
Does a balance transfer help?
A 0% transfer stops interest for the promotional period, usually 12 to 21 months, for a fee of 3% to 5% of the balance. It helps if you can clear most of the balance before the rate jumps.
Is APR the same as the monthly rate?
No. The monthly rate is the APR divided by 12. Issuers actually apply a daily rate (APR ÷ 365) to your average daily balance, which gives a slightly higher cost than this calculator's monthly figure.
What if I keep using the card?
New purchases add to the balance and push the payoff date back. The figures here assume no new spending.