Credit Card Payoff Calculator
Credit card debt can feel overwhelming, especially when high interest rates make balances grow faster than you can pay them down. This calculator shows you exactly how long it will take to become debt-free and how much interest you'll pay along the way.
Enter your current balance, annual interest rate (APR), and your fixed monthly payment. The calculator uses an amortization formula to determine the number of months to payoff, total interest paid, and total amount paid. It also warns you if your payment is too low to cover the monthly interest charges.
How it works
n = -ln(1 - B × r / P) / ln(1 + r), where n is months to payoff, B is the balance, r is the monthly interest rate (APR/12), and P is the monthly payment.
Use cases
- Understanding how long it will take to pay off your credit card balance
- Seeing how much interest you'll pay over the life of the debt
- Evaluating the impact of increasing your monthly payment
- Determining whether your current payment covers more than just interest
Frequently asked questions
How long will it take to pay off my credit card?
The payoff time depends on your balance, APR, and fixed monthly payment, following n = -ln(1 - B × r / P) / ln(1 + r), where r is the monthly rate (APR ÷ 12). A larger payment shortens the timeline dramatically because more goes to principal each month. Enter your numbers and the calculator returns the exact number of months.
Why does my credit card balance barely go down?
If most of your payment covers interest, only a small amount reduces the principal, so the balance shrinks slowly. On a high-APR card, a payment close to the monthly interest charge can leave you in debt for years. Paying more than the minimum is the fastest way to break this cycle.
How is credit card interest calculated?
Card interest is typically compounded on the balance using a monthly rate equal to the APR divided by 12. For example, a 24% APR is 2% per month, so a $2,000 balance accrues about $40 in interest in a month before your payment is applied. This is why carrying a balance is expensive.
What happens if my payment is lower than the monthly interest?
If your payment does not cover the interest that accrues, the balance grows every month and the debt is never paid off. The calculator detects this situation and warns you, because no finite payoff time exists. You must increase the payment above the monthly interest charge to make progress.
Does paying more than the minimum really save money?
Yes, and the savings are large. Every extra dollar goes straight to principal, which reduces the balance that future interest is charged on, shortening the payoff period and cutting total interest. Even a modest increase in the monthly payment can save months of payments and hundreds in interest.