💳 Credit Card Payoff Calculator
Calculate time to pay off credit card debt
Minimum should be at least interest + some principal
How to Use This Calculator
Enter Current Balance
Input your current credit card balance - the total amount you owe on the card.
Enter Annual Interest Rate
Enter your credit card's Annual Percentage Rate (APR). This is the interest rate charged on your balance.
Enter Monthly Payment
Enter the amount you plan to pay each month. This must be greater than the monthly interest to pay off the debt.
Review Payoff Timeline
See how long it will take to pay off your credit card, total interest paid, and total amount paid. Use this to plan your debt payoff strategy.
Formula
Monthly Interest = Balance × (APR ÷ 12)
Remaining Balance = Previous Balance + Interest - Payment
Payoff Calculation:
The calculator iteratively calculates month-by-month until balance reaches zero:
• Each month: Interest is added, then payment is applied
• Process repeats until balance = $0
Example:
If balance $5,000, APR 18%, payment $200/month:
• Month 1: Interest = $75, Payment = $200, New Balance = $4,875
• Continues until paid off in ~32 months
About Credit Card Payoff Calculator
A credit card payoff calculator helps you determine how long it will take to pay off your credit card debt and how much interest you'll pay based on your monthly payment amount. This calculator is essential for debt management and financial planning, as it shows you the true cost of carrying credit card debt and helps you plan your payoff strategy. By understanding your payoff timeline, you can make informed decisions about how much to pay each month to achieve your debt-free goals.
When to Use This Calculator
- Debt Payoff Planning: Plan your credit card debt payoff strategy
- Payment Planning: Determine how much to pay monthly to meet goals
- Interest Analysis: Understand total interest costs
- Motivation: See the impact of higher payments
- Budget Planning: Plan monthly budget around debt payoff
Understanding Credit Card Payoff
- Compound Interest: Interest is charged monthly on outstanding balance
- Payment Impact: Higher payments significantly reduce payoff time and interest
- Minimum Payments: Making only minimum payments can take many years
- Payment Priority: Each payment reduces principal, reducing future interest
Why Use Our Calculator?
- ✅ Payoff Timeline: See exactly how long it takes to pay off
- ✅ Interest Costs: Understand total interest paid
- ✅ Payment Planning: Plan your monthly payments
- ✅ Motivation: See impact of paying more than minimum
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
How long will it take to pay off my credit card?
The payoff time depends on your balance, APR, and monthly payment. With minimum payments, it can take many years. For example, a $5,000 balance at 18% APR with $100/month payments takes about 7 years. Increasing payments significantly reduces payoff time.
How much interest will I pay?
Total interest depends on balance, APR, and how long you take to pay off. With minimum payments, you can pay thousands in interest. For example, a $5,000 balance at 18% APR paid with minimum payments can result in $3,000+ in interest over 7+ years.
Should I pay more than the minimum?
Yes! Paying more than the minimum significantly reduces payoff time and total interest. Even small increases (e.g., $50-100/month more) can save hundreds or thousands in interest and reduce payoff time by years.
What's the best strategy to pay off credit cards?
Common strategies include: (1) Debt Avalanche - pay highest APR first, (2) Debt Snowball - pay smallest balance first for motivation, (3) Pay more than minimum on all cards. Choose based on what motivates you and your financial situation. The key is paying more than minimum payments.