Credit Card Payoff Calculator

Example Calculation

A card has a $5,000 balance at 22.15% APR, the average rate the Federal Reserve reported for card accounts that were charged interest in the second quarter of 2026. Paying a fixed $200 a month clears it in 2 yrs 10 mo and costs $1,768 in interest. Paying only the minimum, set here at the interest for the month plus 1% of the balance with a $25 floor, takes 19 yrs 3 mo and costs $8,159, more than the balance itself. The first minimum payment is only $142.29, which is why the minimum feels easy and costs so much.

What different monthly payments do to a $5,000 balance

22.15% APR, no new purchases, fixed payment each month.

The payment needed to be debt-free by a date

Same balance and rate.

Each extra dollar goes straight to the balance, so a bigger payment saves interest every month after it. Doubling the payment from $150 to $300 cuts the time by more than half.

How It Works

Credit card interest is charged on your balance. The APR is a yearly rate, and the calculator uses one twelfth of it each month. If your balance is $5,000 and the APR is 22.15%, the first month’s interest is about $92. Whatever you pay above that interest goes to the balance. The next month’s interest is a little smaller, because the balance is a little smaller, so more of each payment goes to the balance as time passes.

That is why the payment size matters so much. A payment that barely covers the interest keeps the balance almost where it was. A payment that is much bigger than the interest clears the balance fast. If the payment is no bigger than the monthly interest, the balance never shrinks, and the calculator tells you the least you must pay.

Choose one of three ways to pay. A fixed amount is the usual plan: the same payment every month until the card is clear. Only the minimum shows what the issuer’s minimum costs. Cards set it in different ways. A common one is the month’s interest plus 1% of the balance, with a small floor, so the payment shrinks as the balance shrinks and the debt lasts a very long time. Your cardholder agreement shows your card’s formula. A target date turns the question around and works out the fixed payment that clears the balance in the number of months you choose.

The calculator also shows two comparison plans in a table, the minimum payment and your payment plus $100, so you can see what an extra $100 a month buys. Interest on real cards is charged on a daily balance and new purchases and fees change it, so your statement can differ by a few dollars. Use this for planning, and stop using the card while you pay it off.

Formula Explained

With a monthly rate r = APR / 12, a balance B and a fixed payment p, each month adds interest B x r and then subtracts the payment. The number of months is n = -ln(1 - r x B / p) / ln(1 + r), which only works when p is more than r x B.

The payment that clears the balance in N months is p = B x r / (1 - (1 + r)^-N). Total interest is n x p - B.

Assumptions and limits

• No new purchases, fees or rate changes. Interest is charged monthly at the APR divided by 12; real cards compound daily.
• The 22.15% default is the Federal Reserve’s average rate for card accounts that were assessed interest in the second quarter of 2026. Use the rate on your statement.
• The minimum payment is the month’s interest plus 1% of the balance with a $25 floor, a common formula. Your card may use a different one.