How to use the credit card payoff calculator
Choose how you want to plan:
- Fixed amount: enter how much you can pay each month to see how long it takes and how much interest you'll pay.
- Debt-free by a date: enter the number of months you want to be done in, and see the monthly payment needed.
Find your balance and APR on your latest statement or in your card's app.
How payoff time is calculated
Each month, interest of balance × APR ÷ 12 is added and your payment is subtracted, until the balance reaches zero. To hit a target date, the calculator uses the loan payment formula:
Payment = B × r ÷ (1 − (1 + r)^−n)
Example: a $5,000 balance at 22.9% APR, paid at $200 a month, takes about 35 months and costs around $1,860 in interest. Raise the payment to $300 and it's gone in about 21 months, with roughly $780 less interest.
Fastest ways to get out of credit card debt
- Stop adding new charges to the card you're paying off.
- Pay more than the minimum. Even an extra $50 a month makes a big difference.
- Target the highest APR first (avalanche) to minimize interest.
- Ask your issuer for a lower rate. It works more often than people expect, especially with a good payment history.
- Consider a 0% balance transfer or a personal loan with a lower rate to consolidate the debt.
Frequently asked questions
Why does paying the minimum take so long?
Minimum payments are usually only 1%–3% of the balance plus interest. Most of each payment goes to interest, so the balance shrinks very slowly. A $5,000 balance at over 20% APR can take well over a decade to clear by paying minimums.
How is credit card interest calculated?
Card issuers divide your APR by 365 to get a daily rate and charge it on your average daily balance. This calculator uses the common monthly approximation (APR ÷ 12), which gives very close results.
Should I pay off the highest interest card first?
Paying the highest APR first (the avalanche method) saves the most money. Paying the smallest balance first (the snowball method) gives quicker wins that help some people stay motivated. Either works far better than paying minimums.
Does a balance transfer help?
A 0% balance transfer card can save a lot of interest if you pay the balance off before the promo period ends. Watch for transfer fees (typically 3%–5%) and the rate that applies afterward.