Credit card payoff calculator

How card interest builds up each month

Your card's APR is an annual figure, but interest is charged every billing cycle. Most issuers use a daily periodic rate (APR ÷ 365) applied to your average daily balance, which works out very close to APR ÷ 12 per month on a balance you're not adding to. That's what this calculator uses. Each month it adds interest, subtracts your payment, and repeats until the balance reaches zero. If you want the full mechanics, including grace periods, read how credit card interest is calculated.

Why minimum payments take so long

A typical minimum payment is the month's interest plus 1% of the balance (with a floor of around $25). Because the minimum shrinks as the balance shrinks, you're always paying off roughly 1% of what you owe. On a card charging 20%+ that can mean well over a decade to reach zero, and you can end up paying back close to double what you originally spent. Your own card's formula may differ, so check the "minimum payment warning" box printed on your statement, which US issuers are required to show.

Worked example: $6,000 at 22.9% APR

• First month's interest: $6,000 × 22.9% ÷ 12 ≈ $114.50
• Paying a fixed $250 a month: debt-free in about 2 years 9 months, with about $2,100 in interest
• Paying a fixed $400 a month: about 1 year 6 months, and interest drops to around $1,140
• Minimum payments only: around 20 years, with more than $10,000 in interest (at interest + 1% a month, $25 minimum)

The first $114.50 of every payment in month one simply covers interest. That's why the jump from $250 to $400 roughly halves the interest: more of each extra dollar goes straight at the balance.

Five ways to pay it off faster

• Stop adding to it. Put the card somewhere inconvenient. Any new spending shows up in the "new charges" box above, and it slows everything down.
• Pay a fixed amount, not the minimum. Set a fixed direct debit or autopay so your payment doesn't shrink as the balance does.
• Consider a 0% balance transfer. Moving the balance to a 0% card can stop interest for a year or more, but there's usually a 3–5% fee. See is a balance transfer worth it?
• Ask for a lower rate. If you've paid on time for a year, calling your issuer and asking is free. It doesn't always work, but it sometimes does.
• Throw windfalls at it. A tax refund or bonus applied to a 22.9% card is a guaranteed 22.9% "return".

Got more than one card?

This calculator handles one balance at a time. If you're juggling several cards and loans, the debt payoff calculator compares the snowball and avalanche methods across all of them and shows the order to clear them in.

Frequently asked questions

How long does it take to pay off a credit card with minimum payments?

Often more than 10–15 years on a typical balance, because the minimum is usually just the interest plus about 1% of the balance. Paying a fixed amount above the minimum cuts the time dramatically.

How do I calculate my credit card payoff?

Each month, add the balance × APR ÷ 12 as interest, subtract your payment, and repeat until the balance is zero. The calculator does this month by month and totals the interest.

What payment do I need to pay off my card in 2 years?

Choose 'I want it gone by a deadline', enter 24 months, and the calculator uses the loan payment formula to show the exact monthly amount, including the interest.

Is it better to pay off a credit card in full or leave a small balance?

Pay it in full. Carrying a balance doesn't improve your credit score; it just costs interest. What helps your score is using a small share of your limit and paying on time.

Does paying twice a month reduce credit card interest?

Slightly. Because interest is based on your average daily balance, paying earlier in the cycle lowers that average. The bigger win is simply paying more in total each month.