Find out how long it will take to pay off your balance at your current payment, or what monthly payment you need to be debt-free by a target date.
Credit card interest compounds on your remaining balance, so making only the minimum payment can keep you in debt far longer than expected. This calculator converts your card's APR into a monthly rate and follows your balance month by month: each month interest is added, then your payment is subtracted. It repeats until the balance reaches zero, so the final payment is usually smaller than the rest.
Real cards usually calculate interest daily, using your APR divided by 365 on your average daily balance. Using a monthly rate is a close approximation that works well for planning, but your statement will differ by a few dollars.
If your monthly payment is too low to cover the interest that accrues each month, the balance never shrinks. The calculator flags that case rather than showing a misleading payoff time.
With the default numbers above, a $5,000 balance at 24.99% APR paid at $200 a month, it takes 36 months to pay off. That is 35 payments of $200 and a final payment of $135.16. In total you would pay $2,135.16 in interest, bringing the total cost to $7,135.16, about 43% more than the balance itself.
Now take the same $5,000 balance and pay only a typical minimum: the larger of $25 or 1% of the balance plus interest. The first payment is about $154. Because the payment shrinks as your balance shrinks, the payoff stretches to 19 years and 8 months, and the interest comes to $9,278.01. You would pay $14,278.01 in total, nearly three times the original balance, and the last payment would be only $14.95.
Issuers use different formulas. If your card requires 2% of the balance plus interest, the same debt takes about 11 years and 7 months and costs $4,821.80 in interest. At 3% plus interest it takes about 8 years and 6 months and costs $3,276.97. A higher minimum always shortens the road, which is why paying more than the minimum matters so much.
Here is the same $5,000 balance at 24.99% under different fixed payments:
Moving from $150 to $200 a month saves 22 months and about $1,487 in interest. Even a small increase early on has a large effect because it reduces the balance that interest is charged on. Notice how sensitive the result is near the interest line: at $130 a month it takes 79 months and costs $5,181.85 in interest, more than the original balance, and at $100 a month the balance never goes down at all.
If you would rather pick a deadline, use the payoff time mode. For the same balance, the fixed payment needed is:
A card with a 0% introductory rate can cut your interest dramatically, but only if you use the promotional period well. Suppose you move the $5,000 balance to a card with a 3% transfer fee ($150) and 0% APR for 18 months, and you keep paying $200 a month. After 18 months you have paid $3,600, and $1,550 remains, which then accrues interest at the regular 24.99% rate. You finish in 27 months, paying $158.46 in interest plus the $150 fee, for a total cost of $308.46. Staying with the original card at $200 a month costs $2,135.16 in interest, so the transfer saves about $1,827 in this example.
The savings shrink if the promotion is short, the fee is high, or you keep making new purchases on the card. Read the terms carefully, including the APR that applies once the promotional period ends.
Whichever method you choose, make sure the payment fits your budget with the budget calculator, and see how your debts compare with your income using the debt-to-income calculator. If you are also thinking about buying a home, read about whether to pay off debt first.
Does this account for new purchases on the card?
No. This calculator assumes no new charges are added while you're paying down the balance shown.
Why is my APR different from my card's advertised rate?
Many cards have different APRs for purchases, balance transfers, and cash advances, and your specific rate depends on your creditworthiness. Check a recent statement for the exact APR that applies to your balance.
Would a balance transfer help?
A balance transfer to a card with a lower or 0% introductory APR can significantly reduce interest costs, though transfers often carry a one-time fee (commonly 3-5% of the transferred amount) that's worth weighing against the interest you'd save. The example above shows how the fee and the end of the promotional period change the result.
What's the difference between paying by amount versus by target date?
Paying "by monthly payment" tells you how long a fixed payment takes to clear the balance. Paying "by payoff time" works the other way, telling you what fixed payment you'd need to be debt-free by a specific number of months from now. Use whichever matches the question you're actually trying to answer.
Does making more than one payment a month help?
It can, since interest typically accrues daily on the remaining balance, so an extra mid-month payment reduces the balance interest is calculated on sooner. This calculator models monthly payments for simplicity, so splitting a payment into two won't change what it shows, even though it may save a small amount in the real world.
What if my payment doesn't even cover the interest?
Then your balance grows instead of shrinking, no matter how long you keep paying. The calculator flags that situation rather than showing a payoff time that will never actually happen. If you see this warning, the monthly payment needs to increase before any payoff plan works.
How do card issuers calculate the minimum payment?
Formulas vary, but a common one is the larger of a fixed floor, often $25 to $35, or about 1% of your balance plus that month's interest and fees. Some issuers use 2% to 3% of the balance instead. US statements also include a minimum payment warning that shows how long it would take to pay off the balance with minimum payments only, and how much that would cost.
Will paying down my balance improve my credit score?
Usually, yes. Credit utilization, the share of your available credit that you are using, is a major scoring factor, and lower is generally better. A common guideline is to keep it below about 30%, and lower still is better. Paying on time every month also helps, since late payments can trigger fees, a higher penalty APR, and damage to your credit.