Credit Card Payoff Calculator
See your exact debt-free date and total interest cost. Discover how adding even $25 to your monthly payment cuts months off your repayment timeline.
Inputs
- Current Credit Card Balance
- Annual Interest Rate (APR)
- Planned Monthly Payment
Worked examples
Accelerating $5,000 Balance at 22% APR ($200 vs $250/mo)
You owe $5,000 at a standard 22% APR and pay $200 fixed monthly. Result: 34 Months · $1,732 Total Interest.
Monthly rate = 22% ÷ 12 = 1.833%. Paying $200 retires $5k principal + interest in under 3 years.
Paying Minimum Only on $3,000 at 24.99% APR
A cardholder makes the bare $75 monthly payment on a $3,000 balance. Result: 87 Months · $3,525 Total Interest.
Nearly $62.50 of the initial $75 goes directly to monthly finance charges, doubling total debt repaid.
Frequently asked questions
Why does paying just the minimum payment take so long?
Credit card minimum payments are usually set around 1% to 2% of the balance plus current interest. Because so little goes toward principal each month, interest compounds over years or decades.
What is the fastest way to pay off credit card debt?
Two popular methods: The Debt Avalanche (paying highest APR first to minimize interest) and the Debt Snowball (paying smallest balance first for quick psychological wins). In both methods, pay as much over the minimum as possible.
How is daily interest calculated on a credit card?
Credit cards calculate interest daily using the Daily Periodic Rate (DPR = APR ÷ 365). Each day, DPR is multiplied by your average daily balance, compounding each billing cycle.
How much interest do you save by paying an extra $50 per month?
On a $5,000 balance at 22% APR, increasing your monthly payment from $150 to $200 saves over $900 in total finance charges and eliminates 22 months of debt payments.