Credit Card Payoff Calculator
Find out how long it will take to pay off your credit card — and how much interest you'll pay. Explore strategies to become debt-free faster.
⚠️ The Minimum Payment Trap
If you only paid the minimum each month...
🚀 What If You Added More?
How to Pay Off Credit Card Debt Faster
Credit card debt is one of the most expensive forms of consumer borrowing in the United States. With average APRs regularly exceeding 20%, carrying a balance on your credit card means a significant portion of every payment goes toward interest charges rather than reducing your actual debt. Understanding how credit card interest works — and having a clear payoff plan — is essential for regaining financial control.
Our credit card payoff calculator helps you visualize exactly how long your debt will take to eliminate and how much you'll pay in total interest. Whether you choose a fixed monthly payment or set a target payoff date, the calculator shows you the numbers behind your strategy so you can make informed decisions about your money.
The True Cost of Minimum Payments
Credit card issuers typically set minimum payments at 1–2% of your outstanding balance, or a flat amount (usually $25–$35), whichever is greater. While this keeps your account in good standing, it's designed to maximize the amount of interest the card issuer collects over time. A $5,000 balance at 22.99% APR with minimum payments could take over 20 years to repay — and you'd pay more in interest than the original balance.
This phenomenon, sometimes called the "minimum payment trap," is why the Credit CARD Act of 2009 requires issuers to display how long it would take to pay off a balance with minimum payments. Our calculator goes further by showing you the exact cost difference between minimum payments and your chosen strategy.
Fixed Payments vs. Target Date
Our calculator offers two approaches. In fixed payment mode, you enter the amount you can comfortably pay each month, and the calculator tells you when you'll be debt-free and how much interest you'll pay. In target date mode, you choose when you want to be debt-free, and the calculator tells you the monthly payment required. Both approaches give you a clear roadmap for eliminating your credit card debt.
Strategies to Accelerate Your Payoff
Even small increases in your monthly payment can dramatically reduce your payoff timeline and total interest. Consider these approaches:
- Round up payments: If your calculated payment is $167, round up to $200 — those extra dollars go entirely toward principal.
- Apply windfalls: Tax refunds, bonuses, and side income can make a huge dent when applied as extra payments.
- Balance transfer: If you qualify, a 0% APR balance transfer card can give you 12–21 months of interest-free payoff time. Watch for transfer fees (typically 3–5%).
- Debt avalanche method: If you have multiple cards, pay minimums on all but the highest-APR card — then throw every extra dollar at that card first.
- Negotiate your rate: Call your card issuer and ask for a lower APR. If you have a good payment history, this works more often than you'd expect.
Understanding Credit Card Interest
Credit card interest is typically calculated using a daily periodic rate (your APR divided by 365). Interest accrues on your average daily balance, meaning every day you carry a balance, you're charged interest on that amount. This is why paying early in the billing cycle — or making multiple payments per month — can reduce total interest charges even with the same monthly total.
Frequently Asked Questions
Credit card interest is calculated using your daily periodic rate (APR ÷ 365) applied to your average daily balance. For example, a 22.99% APR means a daily rate of about 0.063%. If your average daily balance is $5,000, you'd accrue approximately $3.15 in interest per day, or about $95 per month.
Most credit card issuers set the minimum payment as the greater of a flat dollar amount ($25–$35) or a percentage of your balance (typically 1–2%). Some also add any past-due amounts and fees. Paying only the minimum keeps your account current but results in years of payments and massive interest charges.
In most cases, paying off credit card debt should be the priority. Credit cards typically charge 20%+ APR, while savings accounts earn 4–5%. The math is clear: you save more by eliminating high-interest debt than you earn by saving. However, maintain a small emergency buffer ($500–$1,000) to avoid going further into debt for unexpected expenses.
Yes — indirectly. Paying more than the minimum reduces your balance faster, which lowers your credit utilization ratio (balance ÷ credit limit). Credit utilization accounts for about 30% of your FICO score. Keeping utilization below 30% — ideally under 10% — can significantly boost your score.
A balance transfer moves your existing credit card balance to a new card — typically one offering 0% APR for an introductory period (12–21 months). This can save hundreds or thousands in interest. However, you'll usually pay a transfer fee of 3–5% of the balance, and any remaining balance after the intro period reverts to the card's regular APR (often 20%+). A balance transfer makes sense if you can pay off the balance within the promotional period.
This calculator is for educational purposes only. Results are estimates based on fixed interest rates and regular payments. Actual results may vary based on your card's specific terms, variable rates, fees, and payment timing. Consult a qualified financial advisor for personalized guidance.