A credit card balance can take a long time to pay off when interest keeps adding up each month. This free credit card payoff calculator shows how long your balance will take to clear at a set monthly payment, how much interest you will pay, and the total you will pay. It also shows the monthly payment you would need to clear the same balance in 12, 24 or 36 months.
Credit Card Payoff Calculator
Months to pay off: —
Total interest: —
Total paid: —
Debt-free by: —
Pay this balance off in a set time
Based on the balance and APR above, here is the monthly payment you would need to clear the balance in:
| Time to pay off | Monthly payment needed |
|---|---|
| 12 months | — per month |
| 24 months | — per month |
| 36 months | — per month |
How it works
When you carry a credit card balance, the card issuer adds interest to what you owe each month. Your payment then comes off the new, higher balance. In the early months, a large share of your payment goes to interest, so the balance falls slowly. As the balance gets smaller, less interest is added, and more of each payment goes to the balance itself.
The three numbers that matter most are your balance, your APR, and your monthly payment. A higher payment, a lower APR, or both, usually means fewer months and less total interest. Paying only the minimum can keep a balance going for years, because most of that small payment is taken up by interest.
The formula, in plain English
Each month, the calculator works in two steps. First, it adds one month of interest: balance x APR / 12. Then it takes off your monthly payment. It repeats those steps, month by month, until the balance reaches zero. The number of repeats is the number of months to pay off, and the interest added along the way is the total interest.
For the second view, the monthly payment needed to clear a balance in a set number of months is: balance x monthly rate / (1 - (1 + monthly rate) raised to minus the number of months), where the monthly rate is APR / 12. If the APR is 0%, the payment is simply the balance divided by the number of months. You do not need to work this out by hand: the calculator above does it for you.
Worked example
Take a $5,000 balance at 24% APR. At $150 a month, it takes 56 months to pay off, with $3,322 in interest. At $200 a month, it takes 36 months, with $2,001 in interest. At $300 a month, it takes 21 months, with $1,143 in interest. A higher payment does more than shorten the wait: in this example, moving from $150 to $300 a month cuts the interest by more than $2,000.
The same $5,000 balance at 24% APR needs $472.80 a month to clear it in 12 months, $264.36 a month in 24 months, and $196.16 a month in 36 months. Try your own numbers in the calculator above and compare the months and total interest for each payment.
Tips to pay less interest
- Pay more than the minimum when you can. Even $25 or $50 extra a month can cut months off the payoff time and lower total interest.
- Pay the same amount every month. A fixed payment you can afford keeps the balance falling in a steady way, instead of drifting up and down.
- Stop adding new charges while you pay the balance down. New spending adds to the balance and to the interest charged on it.
- Look for a lower APR. A lower rate means less interest is added each month, so more of your payment goes to the balance.
- Make a plan you can keep. If money is tight, read how to pay off credit card debt on a low income for ways to free up money for extra payments.
Common mistakes to avoid
- Only paying the minimum each month, which keeps most of the payment going to interest.
- Paying the card down while still using it for new spending, so the balance never falls.
- Choosing a payment that only just covers the interest, so the balance stays about the same.
- Missing a payment, which can add late fees and raise the cost of the debt.
- Looking only at the monthly payment and not at the total interest or the payoff date.
Frequently asked questions
How long will it take to pay off my credit card?
It depends on your balance, your APR and your monthly payment. Enter those three numbers in the calculator above. A higher monthly payment shortens the time a lot, because less interest builds up along the way.
What happens if my payment only covers the interest?
The balance will not go down. Each month, the interest added is about the same as the payment, so the balance stays where it is. The calculator will warn you about this. Try a higher payment until the balance starts to fall.
Does paying more each month really save that much?
Yes. In the worked example above, paying $300 a month instead of $150 a month on a $5,000 balance at 24% APR cuts the payoff time from 56 months to 21 months and cuts the interest from $3,322 to $1,143.
What monthly payment clears my balance in 12, 24 or 36 months?
Use the second view under the results. Enter your balance and APR, and it shows the monthly payment needed for each of those three time frames, with no new charges added.
Does this calculator include new charges, fees or late payments?
No. It assumes you make the same payment every month, your APR stays the same, and you add no new charges. Fees, late payments and APR changes would change the real payoff time and total interest.
This calculator and guide are for general education only and are not financial advice. Your actual payoff time and interest depend on your card terms, APR changes, fees and payments. For another way to look at loan costs, try the Car Loan Calculator.