Money
Credit Card Payoff Calculator
How long your balance takes to pay off and how much interest it costs
This credit card payoff calculator shows how many months a fixed monthly payment takes to clear your balance at your APR and how much interest you pay, or the payment you need to finish in the months you choose.
The key idea
A small payment is not a cheap payment: it is the most expensive way to pay
A $5,000 balance at 22% APR paid at $150 a month takes 52 months and costs $2,798.05 of interest. Raising the payment to $250 clears it in 26 months with $1,285.72 of interest: $1,512.33 saved and two years sooner.
How it is calculated
Each month, interest is added to the balance at the APR divided by 12, and your payment is subtracted. We repeat until the balance reaches zero, assuming you make no new purchases.
Next balance = balance × (1 + APR / 12) − payment
To find the payment for a target number of months, we use the loan formula: payment = B × i / (1 − (1 + i)^−n). If your payment is less than the monthly interest, the balance never goes down.
Card issuers usually charge interest daily on the average daily balance, and minimum payments change as the balance falls, so your statement can differ slightly. Your statement also shows how long the minimum payment alone would take.
Worked example
A $5,000 balance at 22% APR, paying $150 a month: the first month is $91.67 of interest and only $58.33 toward the balance. It takes 52 months and $2,798.05 of interest. To finish in 24 months instead, you would pay $259.39 a month.
Typical cases
How long it takes to pay off $5,000 on a credit card
Months to pay off a $5,000 balance at 22% APR and the total interest you pay, by fixed monthly payment, with no new charges.
| Monthly payment | Time to pay off | Total interest |
|---|---|---|
| $100 | 137 months | $8,678.06 |
| $150 | 52 months | $2,798.05 |
| $200 | 34 months | $1,749.88 |
| $300 | 21 months | $1,021.60 |
| $500 | 12 months | $574.44 |
Save or share this table as an image Common questions
Frequently asked questions
How long will it take to pay off my credit card?
It depends on the balance, the APR and your payment. $5,000 at 22% APR takes 52 months at $150 a month and 26 months at $250, assuming no new charges.
How is credit card interest calculated?
Most issuers divide the APR by 365 to get a daily rate and charge it on your average daily balance. Dividing the APR by 12 gives almost the same monthly cost.
What happens if I only pay the minimum?
You pay much more interest and take years longer, because the minimum shrinks as the balance falls. Your statement must show how long the minimum payment would take and the total cost.
What payment do I need to be debt-free in two years?
For $5,000 at 22% APR, $259.39 a month for 24 months. Choose «Pay it off in a number of months» and type the months to see your number.
Does a balance transfer help?
It can, if the promotional rate is low and you pay the balance before it ends. Count the transfer fee, often a percentage of the balance, and the rate that applies after the promotion.
Which card should I pay off first?
Paying the highest APR first saves the most interest; paying the smallest balance first gives quicker wins. Either way, keep at least the minimum on every card.
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