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Credit Card Payoff Calculator
See how long it takes to pay off a credit card — or what monthly payment you need to be debt-free by a target date.
How credit card debt works
Credit card debt is unusually expensive because of two compounding effects. First, the APR is high — typically 18-29% in the US, often higher for store cards. Second, interest is charged on the average daily balance and added to the principal monthly, which means next month you're paying interest on this month's interest. The minimum payment is designed to keep you in debt: it's usually 1-3% of the balance plus accrued interest, just barely above what's needed to break even. On a $5,000 balance at 22% APR, paying only the minimum can take 20+ years and cost more than the original balance in interest alone. The way out is mathematical, not motivational: every extra dollar applied above the minimum reduces principal directly, which reduces every interest charge that follows. This calculator runs both directions of that math. In "how long" mode, you tell it what you can pay and it shows the timeline. In "pay off in X months" mode, you set a target date and it tells you the payment required. Either way, the lesson is the same — bigger payments compound in your favor.
How to use it
- Pick a mode — Choose "How long to pay off?" if you have a fixed monthly amount in mind, or "Pay off in X months" if you have a deadline.
- Enter the balance and APR — Use the current statement balance and the purchase APR (not the introductory teaser if it has expired).
- Enter your payment or target — Be honest — a payment you'll skip in month three doesn't help. Pick a number you can sustain.
- Read the comparison — The tip below the result shows what just $50 more per month saves. Often it's hundreds or thousands.
The math
Both modes use the standard amortization formula, just rearranged. The first solves for the number of months given a payment. The second solves for the payment given a number of months.
n = − ln(1 − (B × r) / M) / ln(1 + r)
B is the balance, r is the monthly rate (APR ÷ 12 ÷ 100), M is the monthly payment, and n is the number of months.
M = B × r × (1+r)n / ((1+r)n − 1)
Same variables, solving for the payment that fully clears the balance in exactly n months.
Why minimum payments are a trap
On a $5,000 balance at 22% APR: paying $100/month (around the typical minimum) takes about 8 years and costs roughly $4,800 in interest — almost doubling what you owed. Paying $150/month finishes in about 4 years with $2,300 in interest. Paying $250/month finishes in just over 2 years with about $1,200 in interest. The pattern repeats at every balance: small increases in monthly payment produce large reductions in total cost. Run your own numbers above.