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Credit card payoff calculator
A credit card balance left to drift is one of the most expensive forms of borrowing most people ever hold, because the rate is high and it compounds every month.
This pays a fixed amount every month until the balance reaches zero, with interest added each month on what is still owed.
Enter what you owe, the card APR and the fixed amount you can pay each month, and this tool returns how long the balance will take to clear, the total interest you will hand over, and the total you will have paid by the end. The result often surprises people. Paying the minimum on a typical card can stretch a modest balance over a decade and cost more in interest than the original debt, because the minimum is set low on purpose and most of an early payment goes on interest rather than the balance. The tool makes that visible, and it shows how raising the monthly payment, even by a little, collapses the timeline and the interest together. It assumes you stop spending on the card, since new purchases would reset the maths, and that the rate stays fixed.
How it works
- Enter the current balance on the card, the amount you owe today.
- Enter the card APR, the annual interest rate shown on your statement.
- Enter the fixed amount you intend to pay every month.
- Each month the tool adds one twelfth of the APR as interest, then subtracts your payment.
- It repeats until the balance reaches zero, counting the months and adding up the interest.
each month: balance = balance x (1 + APR / 12) - payment, repeated until balance reaches zero
The card charges one twelfth of the APR on the outstanding balance every month, so the balance first grows by that interest and then falls by your payment. Because the interest is taken before the payment, early payments mostly cover interest and only a little reduces the balance; as the balance falls the interest shrinks and more of each payment bites. The number of months until the balance hits zero is the payoff time, and the interest charges summed over those months is the total interest.
- balance
- the amount still owed on the card
- APR
- the annual interest rate on the card
- payment
- the fixed amount paid each month
Clearing a 5,000 balance at 19.9% APR
| Pay 100/month | 108 months | over 5,700 interest |
| Pay 200/month | 33 months | about 1,511 interest, the example |
| Pay 300/month | 20 months | about 901 interest |
| Pay 500/month | 11 months | about 472 interest |
Worked example
You owe 5,000 on a card at 19.9 percent APR and pay a fixed 200 a month: the balance clears in 33 months, just under three years, and you pay about 1,511 in interest on top of the 5,000. Drop the payment to 100 a month and it takes 108 months, nine full years, with more than 5,700 in interest, more than the balance itself. Lift it to 300 and the card is gone in 20 months with about 900 of interest. The payment you choose, far more than the balance, drives the cost.
Key facts
- Credit card interest compounds monthly, so a balance left alone grows faster the longer it sits.
- The minimum payment is designed to keep you in debt for years while covering the interest.
- Raising the monthly payment cuts both the payoff time and the total interest, often dramatically.
- If your payment is below the monthly interest, the balance never clears at all.
Tips
- Pay as far above the minimum as you can, since the first extra pounds saved the most interest.
- Consider a balance transfer to a low-rate card, but factor in the fee and the end of the promotional period.
- Stop using the card while you pay it down, because new spending resets the clock.
- If you hold several cards, clear the highest-rate one first while paying the minimum on the rest.
Frequently asked questions
Why does paying the minimum cost so much?+
The minimum is usually a small percentage of the balance, set just high enough to cover most of the interest and chip at the balance slowly. Because so little reduces what you owe, the interest keeps compounding on a barely-shrinking balance, stretching the term for years and multiplying the total cost.
How is the monthly interest worked out?+
The tool divides the APR by twelve to get the monthly rate, then charges that on the balance each month before your payment lands. A 19.9 percent APR is about 1.66 percent a month, so a 5,000 balance is charged roughly 83 in the first month alone.
What happens if my payment is below the interest?+
Then the balance grows instead of shrinking and the card is never paid off, which the tool flags as never clearing. You have to pay more than the monthly interest before any of your payment starts reducing what you owe.
Does a balance transfer help?+
It can. Moving the balance to a card with a low or zero promotional rate means more of each payment cuts the balance rather than feeding interest. Watch the transfer fee and the date the promotional rate ends, when the rate usually jumps back up.
Should I clear the card or save instead?+
Clearing a card charging around 20 percent almost always beats saving, because no ordinary savings account pays anywhere near that rate after tax. Keep a small emergency buffer, then put spare money on the highest-rate debt first.
Does this include fees or new spending?+
No. It assumes a fixed rate, no annual fee and no further purchases. Real cards may add a fee or a charge for late payment, and any new spending adds to the balance, so treat the figure as a clean baseline.
Things to watch
- The figure assumes a fixed rate and no new spending; real-world purchases and fees push the cost higher.
- A minimum-only payment can mean paying more in interest than you originally borrowed.
- Missing a payment can trigger a penalty rate and fees that are not modelled here.
Last updated: 2026
This is an estimate for general guidance, not financial, tax, legal or medical advice. Figures can change and individual circumstances vary. Always confirm with an official source before making decisions.
Built and maintained by Vikas Dulgunde. Editorial standards.