Credit Card Payoff Calculator
Minimum payments are designed to keep a balance alive for years. Enter your balance and APR to compare two paths: a fixed monthly payment you choose, or the typical minimum-payment schedule (a percent of the balance with a dollar floor).
Results
Assumptions: No new charges, no fees, and a constant APR for the whole payoff period.
Formula
How to use this calculator
- Enter the balance and APR from your statement.
- Choose a fixed payment or the minimum-payment schedule.
- Fill in the payment details for that mode, then Calculate.
Worked example
A $3,000 balance at 18% APR with a fixed $150 payment.
- First month’s interest: 3,000 × 1.5% = $45 — the payment covers it comfortably.
- Month by month simulation reaches zero in the 24th month.
Result: Debt-free in about 24 months, with roughly $595 of interest along the way.
Frequently asked questions
Why do minimum payments take so long?
Because the minimum shrinks as the balance falls — often just covering interest plus a sliver of principal. On typical terms, minimum-only payments can stretch a modest balance past a decade and double its cost.
What if my payment is lower than the monthly interest?
The balance grows instead of shrinking — negative amortization. The calculator flags this instead of pretending the debt gets paid off.
Does this assume I stop using the card?
Yes. New charges would add to the balance every month and extend the payoff. The math assumes the balance only goes down.
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