Credit Card Payoff Calculator

See how long it takes to pay off a credit card with minimum payments versus a fixed monthly payment, and how much interest you could save.

Why minimum payments take so long

Card issuers set the minimum payment low on purpose. A common formula is the month's interest plus 1% of the balance, with a floor of around $25 to $40. Because the minimum is tied to the balance, it shrinks as you pay the card down — so the amount going toward principal shrinks too. The result is a long tail of small payments that can stretch for many years, with interest charged the whole way.

U.S. card statements are required to include a "minimum payment warning" that shows how long payoff would take at the minimum and how much you'd pay in total, along with the monthly payment needed to pay off the balance in three years. This calculator does the same kind of comparison for any balance and payment you choose.

How to use this calculator

Enter your current balance and the card's purchase APR from your statement. Under "Minimum payment rule," enter your issuer's formula if you know it — it's usually described in your cardholder agreement or on the statement. If you don't know it, the default (interest plus 1%, at least $35) is a reasonable approximation for many U.S. cards. Then enter a fixed amount you could pay every month. The results compare both approaches: time to payoff, total interest, and the difference.

The power of a fixed payment

When you pay a fixed amount, every dollar of principal you knock off reduces next month's interest, and because your payment doesn't shrink, more and more of it goes to principal. Even a fixed payment equal to your first minimum payment typically cuts years off the payoff time. Try entering your current minimum as the fixed amount and compare.

Ways to lower the cost further

Ask for a lower rate. If you've paid on time, calling your issuer to request a lower APR costs nothing, and some cardholders get a reduction. Balance transfer cards may offer a promotional low or 0% rate for a set period, usually with a transfer fee of a few percent; they help only if you pay the balance down before the promotion ends and avoid new charges. Stop adding new charges to the card you're paying off, since new purchases can lose the interest-free grace period while a balance is carried. If you have several cards, compare the snowball and avalanche methods with our debt payoff calculator.

How interest is really calculated

Most issuers charge interest using a daily periodic rate (APR ÷ 365) on your average daily balance. This calculator uses a monthly rate (APR ÷ 12) applied to the balance each month, which gives very close results for planning but won't match your statement to the cent. It also assumes no fees, no rate changes, and no new purchases.

Estimates only, not financial advice. Results assume a fixed interest rate, payments made on time each month, no new charges or fees, and interest compounded monthly. Your lender's actual figures may differ. See our disclaimer.

Frequently asked questions