Credit Card Payoff Calculator
Calculator
Your numbers
Assumes no new purchases on the card.
Results
Paying $100 a month
2 years, 2 months
$514 in interest
Paying only the minimum
11 years, 7 months
$2,600 in interest
- Balance $2,000
- Interest $514
“Minimum” here means 1% of the balance plus that month's interest, or $25, whichever is more — a common formula. Card issuers vary; your statement shows yours.
Educational calculator, not financial advice. Results are hypothetical estimates based on the numbers you enter.
How to use this credit card payoff calculator
- Enter your balance: the amount you owe on the card today. Your statement or card app shows it.
- Enter your card's APR for purchases. It's on your statement and in your card agreement.
- Enter the monthly payment you can make. The calculator shows how many months it takes and how much interest you'd pay.
- Compare it with Paying only the minimum to see what the smallest payment really costs.
Example: $1,000 at 24% APR
Lena owes $1,000 on a card with a 24% APR. That's 2% a month, so the balance adds about $20 in interest in the first month.
If she pays $50 a month and stops using the card, she's done in 26 months and pays about $290 in interest. If she pays only the minimum (1% of the balance plus that month's interest, at least $25), it takes 74 months, more than six years, and costs about $887 in interest. That's close to the price of what she bought, paid a second time.
What the result means
A payment only shrinks the balance by the part that's left after interest. When your payment barely covers the interest, most of it disappears and the balance hardly moves. Adding even a little to each payment cuts both the time and the total interest.
The APR and Interest lesson shows how card interest is charged and why minimum payments are built to last so long.
Questions
- Why does paying the minimum take so long?
- The minimum is mostly that month's interest plus a small slice of the balance. As the balance shrinks, the minimum shrinks too, so you never speed up.
- How do I avoid credit card interest completely?
- Pay the full statement balance by the due date every month. Most cards then charge no interest on purchases. Interest starts when you carry a balance from one month to the next.
- Is the minimum payment the same on every card?
- No. Each card company sets its own formula; this calculator uses a common one. Your statement shows your real minimum, and by law it also shows how long paying only the minimum would take.
How the math works
- Each month, interest is added at the APR ÷ 12, then your payment is subtracted.
- The minimum-payment comparison uses a common formula: 1% of the balance plus that month's interest, or $25, whichever is more.
- Assumes no new purchases and no late fees. Real cards may calculate interest daily.