Credit Card Interest Calculator: Payoff Time and Total Interest
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Credit card interest each month is your balance times the APR divided by 12. On $6,000 at 24.99% that is about $125 in the first month. A $250 payment clears the balance in 2 years and 10 months, with about $2,403 of interest.
A $6,000 balance at 24.99% APR paid at $250.00 a month is gone in 2 years 10 months. You pay $2,403 in interest, for a total of $8,403. Paying only the minimum would take 21 years 2 months and cost $11,360 in interest.
Payment schedule
| Month | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $250.00 | $124.95 | $125.05 | $5,874.95 |
| 2 | $250.00 | $122.35 | $127.65 | $5,747.30 |
| 3 | $250.00 | $119.69 | $130.31 | $5,616.99 |
| 4 | $250.00 | $116.97 | $133.03 | $5,483.96 |
| 5 | $250.00 | $114.20 | $135.80 | $5,348.16 |
| 6 | $250.00 | $111.38 | $138.62 | $5,209.54 |
| 7 | $250.00 | $108.49 | $141.51 | $5,068.03 |
| 8 | $250.00 | $105.54 | $144.46 | $4,923.57 |
| 9 | $250.00 | $102.53 | $147.47 | $4,776.10 |
| 10 | $250.00 | $99.46 | $150.54 | $4,625.56 |
| 11 | $250.00 | $96.33 | $153.67 | $4,471.89 |
| 12 | $250.00 | $93.13 | $156.87 | $4,315.02 |
Show the steps
- Monthly rate: 24.990% ÷ 12 = 2.0825%.
- Month 1 interest: $6,000.00 × 2.0825% = $124.95. Of the $250.00 payment, $125.05 reduces the balance.
- Months to pay off = −ln(1 − B × r ÷ p) ÷ ln(1 + r) = 33.61, so 34 payments.
Credit card payoff
Interest each month = balance × APR ÷ 12
Months = −ln(1 − B × r ÷ p) ÷ ln(1 + r)
r = APR ÷ 12, p = monthly payment, B = balance
- Card issuers charge interest daily on the average daily balance. A monthly rate gives a close estimate.
- Assumes no new purchases and a fixed APR. Fees and late payments are not included.
Estimates for planning and learning, not financial, tax, legal or medical advice. Check figures with your lender, tax preparer or doctor before you act.
About this calculator
Credit card interest compounds, so carrying a balance is expensive. This calculator shows exactly how long your payoff takes and what the interest costs, and compares your plan with making only the minimum payment.
You can enter a fixed payment, or choose a payoff date and let the calculator find the payment you need.
How to use it
- Enter your card balance and APR.
- Choose a fixed monthly payment, or the number of months you want to take.
- Open the options to match your card’s minimum payment rule.
- Compare your plan with minimum payments in the chart and the cards.
Why minimum payments cost so much
A typical minimum payment is 1% of the balance plus that month’s interest, with a floor of about $25. Because the payment shrinks as the balance falls, the debt can take decades to clear and cost more in interest than you borrowed.
Ways to pay less interest
- Pay more than the minimum, even a small amount.
- Move the balance to a 0% introductory card, if the transfer fee is low.
- Pay the highest rate card first (the avalanche method).
Sources
Quick check: test yourself
A card has $5,000 at 24% APR. About how much interest is charged in the first month?
Correct answer: $100. 24% ÷ 12 = 2% a month. $5,000 × 0.02 = $100.
Why do minimum payments take so long to clear a balance?
Correct answer: Most of each payment goes to interest. Early payments are mostly interest, so the balance falls slowly.
If your payment is smaller than the monthly interest, your balance will…
Correct answer: Grow. You do not cover the interest, so the balance rises.
Pick an answer for each question.
Common questions
How is credit card interest calculated?
Issuers apply a daily rate (APR ÷ 365) to your average daily balance. A monthly rate of APR ÷ 12 gives a close estimate.
How long will it take to pay off my card?
Enter your balance, APR and payment. The calculator finds the number of months.
What is a minimum payment?
The smallest amount you must pay to stay current. It is usually about 1% of the balance plus interest, with a minimum of about $25.
Can I avoid interest entirely?
Yes. If you pay the full statement balance by the due date each month, most cards charge no interest on purchases.
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