Debt
Credit Card Payoff Calculator
Built and maintained by Chandranshu Kumar · Figures from the IRS, SSA, BLS and Freddie Mac
Why minimums keep you stuck
A minimum payment is designed to be small, often around 2% of the balance, which barely covers the interest on a high-rate card. As the balance shrinks the minimum shrinks with it, so the finish line keeps moving. Paying a fixed amount instead, and never less than you paid last month, is what actually gets you out. If your rate is high, a balance transfer or a personal loan at a lower rate can help, as long as you do not run the card back up.
Assumes a fixed monthly payment and no new spending. Not financial advice.
How the payoff time is worked out
The tool runs your card month by month. Each month it adds interest, which is the APR divided by 12 times the current balance, then subtracts your fixed payment. On a $6,000 balance at 24% APR the first month's interest is about $120, so a $250 payment lowers the balance by roughly $130.
It repeats that until the balance reaches zero. At 24% and $250 a month the $6,000 clears in about 2 yr 10 mo and runs up $2,256 in interest, for $8,256 paid in all. Because interest is charged on whatever is left, a higher payment clears the card faster and for less, since a smaller balance carries into the next month.
If the payment is smaller than the first month's interest, the balance grows instead of shrinking and never clears. The tool flags that case rather than showing a payoff date.
Common questions
Why does the minimum take so long?
The minimum is a small percent of the balance, so it falls as the balance falls and mostly covers interest. A fixed payment clears the card far faster.
Will a balance transfer help?
A card with a 0% intro period stops interest for a while, so the whole payment hits the balance. It pays off only if you clear most of it before the intro ends and you add no new charges. Watch for the transfer fee, usually 3% to 5% of the amount moved.
Does paying twice a month help?
A little, since the balance that interest is charged on stays lower for part of the month. The bigger lever is the total you pay each month, not how you split it up.
Is APR the same as the monthly rate?
No. APR is the yearly rate. The card charges about one-twelfth of it each month on the balance, which is why a 24% APR works out to roughly 2% a month. For several cards at once, use the debt payoff calculator, or read the full method.