Credit Card Payoff Calculator

This calculator uses a standard amortisation loop. Each month it computes interest by multiplying your remaining balance by the monthly rate (APR ÷ 12). It then subtracts your fixed payment from the balance-plus-interest figure. The process repeats until the balance reaches zero or exceeds 600 months (the safety limit).

The result shows total months to payoff, total interest paid, and your projected debt-free date. Because the model assumes a fixed monthly payment and a constant APR, any deviation—irregular payments, rate changes, new charges—shifts the timeline. For the most accurate projection, enter the exact balance and APR from your latest statement and the payment you plan to make consistently.

If your payment barely exceeds the monthly interest charge, the balance drops very slowly. For example, on a $5,000 balance at 22% APR, interest alone is about $92/month. A $100 payment reduces principal by only $8, meaning payoff takes decades. Increasing the payment to $200 cuts the timeline from 30+ years to about 30 months.

Only paying the statement minimum. Minimums are calculated to maximise lender profit. Even when your balance drops, minimum requirements drop too, extending the payoff indefinitely. Fix a dollar amount and never reduce it.

Continuing to charge on the card. Adding new purchases while trying to pay down a balance creates a moving target. The calculator assumes no new charges. If you must use the card, subtract those charges from your "extra" payment to see the real payoff impact.

Ignoring the grace period. Most cards waive interest on new purchases only if you pay the full statement balance. Carrying any balance eliminates the grace period, meaning interest accrues on new purchases from the transaction date—effectively making everything more expensive.

Not checking your APR tier. Many cards have different rates for purchases, cash advances, and balance transfers. Cash advance APRs can be 25–30%, and interest accrues immediately with no grace period. Enter the rate that applies to the majority of your balance for the most accurate result.

Example 1 — Moderate balance, average rate. Balance: $4,200, APR: 19.99%, Payment: $150/month. Monthly interest starts at roughly $70, so $80 goes to principal. Payoff time: approximately 35 months. Total interest: about $1,050. Increasing the payment to $200 cuts payoff to 25 months and interest to $670—saving $380.

Example 2 — High-rate store card. Balance: $1,800, APR: 27.99%, Payment: $75/month. Despite the small balance, the high rate generates about $42/month in interest. Payoff: roughly 31 months. Total interest: about $530. A $125 payment cuts it to 17 months and $310 in interest.

Example 3 — Large balance, low minimum. Balance: $12,000, APR: 16.49%, Payment: $240/month (2% minimum). Monthly interest is about $165, so only $75 reduces principal. Payoff: approximately 77 months (6.4 years). Total interest: roughly $6,500. Bumping the payment to $400 cuts the timeline to 37 months and interest to $2,700.