FINBIZTOOLS
Credit Card Payoff Calculator
See how long it will take to clear a credit card balance if you pay a fixed amount every month. Enter the balance, APR and your planned monthly payment to get the months to pay off, the total interest and the total amount paid.
Private by design · Inputs and downloads stay in your browser
Changes the currency symbol and number format only. Amounts are not converted.
The payment is assumed fixed every month, with interest charged on the remaining balance at APR ÷ 12. New purchases and promotional rates are not modeled. If the payment barely covers interest, calculation is refused rather than showing an endless payoff.
How to use the Credit Card Payoff Calculator
- Enter the current balance.
- Enter the card's annual percentage rate (APR).
- Enter the fixed monthly payment you plan to make, then select Calculate.
Use the currency selector above the inputs to change the symbol. It changes the display only and does not convert amounts.
Why the payment amount matters so much
Credit card interest compounds on the remaining balance, so a payment that barely covers the monthly interest can leave the balance almost unchanged for a very long time. A payment well above the interest portion clears the balance far faster and for far less total interest.
This calculator will refuse to calculate a payment that does not even cover the first month's interest, because the balance would never go down at that payment.
How the calculation works
Credit card payoff formula
Each month: interest = balance × (APR ÷ 1200)
principal paid = payment − interest
balance = balance − principal paid, repeated until the balance reaches zero
- The payment is assumed fixed every month.
The months-to-payoff and total interest figures come directly from running this month-by-month simulation, not an approximation.
Credit card payoff calculation example
A 100,000 balance at 20% APR, paid at a fixed 5,000 every month:
| Current balance | 100,000 |
|---|---|
| APR | 20% |
| Monthly payment | 5,000 |
| Months to pay off | 25 |
|---|---|
| Total interest paid | 22,660.69 |
| Total amount paid | 122,660.69 |
Amounts are shown without a currency symbol because the arithmetic is identical in any currency. The currency selector only changes the symbol and number format; it never converts amounts.
Assumptions and limitations
Assumptions
- The monthly payment is fixed and does not change while the balance is paid down.
- Interest is charged monthly on the remaining balance at APR ÷ 12.
- No new purchases, fees, promotional rates or minimum-payment rules from your actual card are modeled.
Limitations and why results can differ
- Real cards often have a minimum payment rule (for example, a percentage of the balance) that differs from a fixed amount; using only the minimum can take far longer than this tool shows if you enter a higher fixed figure.
- New purchases added to the card during the payoff period are not modeled.
- Promotional or introductory APRs that change over time are not modeled; use the rate that will actually apply.
Frequently asked questions
What does negative amortization mean here?
If your payment does not exceed the monthly interest, the balance cannot go down — this calculator refuses to run in that case and asks for a higher payment.
Should I use my card's minimum payment?
You can, but a minimum-only payment is often close to the interest-only threshold and can take many years. Enter the actual fixed amount you plan to pay for a realistic result.
Does this account for new purchases?
No. It assumes no new spending on the card while the balance is being paid down.
Why is the total interest so high?
Interest compounds on the balance every month until it is fully paid off; a lower payment relative to the balance means more months of interest accruing.
Methodology
Inputs are validated: current balance from 0.01 to 100,000,000, APR from 0% to 50%, and monthly payment from 0.01 to 10,000,000. A payment that does not exceed the first month's interest is rejected before any simulation runs, since the balance could never decrease.
The engine simulates the balance month by month: each month accrues interest at APR ÷ 12 on the remaining balance, then applies the fixed payment to interest first and principal second, continuing until the balance reaches zero (capped at 1,200 months as a safety limit). Months to pay off and total interest come directly from this simulation, not a formula shortcut. Rounding is applied only for display. The calculation runs in your browser and inputs are not sent to a server.
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Disclaimer
Results are estimates based on the assumptions you enter. Actual repayments depend on your lender’s terms, fees and rate structure. This page is for information only and is not lending or financial advice. Read the full Disclaimer.
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This tool is part of Loans and Mortgages.
A common order: check what you can afford, compare loan offers, then see how extra payments change total interest.