Credit Card Payoff Calculator
Credit cards charge the highest interest most people ever pay — often 30–45% APR. Enter your balance, rate and monthly payment to see exactly how many months you're locked in for, the total interest cost, and how much faster a bigger payment sets you free.
How to use this calculator
- Enter your current card balance.
- Enter the card's APR — check your statement; it's usually 30–45%.
- Enter what you can pay monthly and press Calculate.
- Look at the 50%-more row — the fastest legal way to save money is killing this debt.
Formula used
Derived from the amortization formula solved for time. If your payment barely exceeds the monthly interest (B × i), the logarithm explodes — payoff takes practically forever, which is precisely how minimum payments are designed.
Example calculation
Balance 100,000 at 36% APR, paying 5,000/month:
Payoff takes 31 months, costing about 55,000 in interest — over half the original balance again. Paying 7,500/month instead clears it in 18 months and saves roughly 25,400.
Why card debt is different
Credit card interest compounds monthly at rates 4–6× a home loan's, and minimum payments (typically 2–5% of balance) are calibrated to keep you paying for years. On many cards, paying only the minimum on a moderate balance takes over a decade and costs more in interest than the original debt.
The escape order is well-established: stop adding new charges, pay the highest-APR card first (avalanche method), and consider a balance transfer or personal loan at half the rate if your credit allows.
Why use this calculator?
- See the true timeline and cost of your balance — numbers card statements downplay.
- Catch the danger zone where payments barely beat interest and payoff never comes.
- Quantify exactly what paying more each month saves — powerful motivation.
Frequently asked questions
Why does paying the minimum take so long?
Minimums are set just above the monthly interest, so almost nothing touches the principal. Each month's interest rebuilds most of what you paid down. Even modest fixed payments above the minimum cut years off the timeline.
Should I pay off my card or invest?
Pay the card. Card APRs of 30–45% are a guaranteed, tax-free "return" no investment reliably beats. The only cash that comes first is a small emergency buffer so you don't reload the card.
Does a balance transfer help?
If you qualify for a lower-rate personal loan or a 0% promotional transfer, yes — the same payment then attacks principal instead of interest. Watch transfer fees and the rate after the promo ends, and don't run up the old card again.