Credit Card Payoff Calculator

How Credit Card Payoff Works

Credit cards charge interest daily. If you only pay the minimum, payoff can take decades. This calculator shows how long it takes with a fixed monthly payment.

The payoff formula

Months = −ln(1 − r × B ÷ P) ÷ ln(1 + r)

Where B = balance, r = monthly interest rate (APR ÷ 12), P = your monthly payment.

Step-by-step

1. Enter your current balance, APR, and the monthly payment you plan to make.
2. The calculator determines how many months until the balance reaches zero.
3. Total paid = payment × months. Interest = total paid − original balance.

Worked example

,000 balance, 19.9% APR, 0/month. Monthly rate ≈ 1.66%. Payoff ≈ 24 months. Total paid ≈ ,600. Interest ≈ 0.

Tips

Your payment must exceed the monthly interest charge or the balance will never decrease. Even small increases in your monthly payment dramatically shorten payoff time. Consider the avalanche method (highest APR first) if you have multiple cards.