About the Credit Card Payoff Calculator
Credit card APRs are often much higher than other types of borrowing, so a balance paid down slowly can cost a significant amount in interest. Seeing the payoff timeline in months and dollars makes it easier to plan.
Add an optional extra monthly payment to compare your current plan side by side with a faster payoff plan.
How It Works
Each month, the calculator adds interest at your APR ÷ 12 to the balance and then subtracts your payment. It repeats until the balance reaches $0. The last payment is only the amount needed to finish paying off the card.
The calculator assumes no new purchases, balance transfers, or fees, and a fixed APR. Most U.S. card issuers calculate interest on your average daily balance, so your statements may differ slightly from these estimates.
Your monthly payment must be larger than the first month's interest charge; otherwise the balance would never go down.
Formula
- Bcurrent balance
- rmonthly rate = APR ÷ 12
- Pmonthly payment
Example
You owe $5,000 on a card with a 22.99% APR and pay $200 a month. Then you try adding $50 extra each month.
Inputs
- Balance
- $5,000
- APR
- 22.99%
- Monthly payment
- $200
- Extra payment
- $50
Results
- Time to pay off
- 2 years, 11 months
- Total interest
- $1,871.08
- With extra $50
- 2 years, 2 months
- Interest saved
- $505.50
Understanding Your Results
- Months to Pay Off: How long until the balance reaches $0 at your current payment.
- Total Interest: All interest charged over the payoff period.
- Total Amount Paid: Your balance plus total interest.
- Interest Saved: The difference in total interest between your current plan and the extra-payment plan.