Credit Card Payoff Calculator

A credit card payoff calculator shows how long a balance takes to clear and what it costs. Paying $200 a month on $5,000 at 22% APR, with interest charged daily, takes 34 months and $1,773.30 in interest. Paying only a minimum of 1% plus interest takes 19 years and costs $8,038.00.

How to use the credit card payoff calculator

1. Pick a question: Payoff time (how long at the payment you can afford), Payment needed (what to pay to finish in a set number of months), Minimum payment (what happens if you pay only the minimum) or Balance transfer (whether a transfer fee and promo APR save money).
2. Type the balance and APR from your statement. Commas and dollar signs are fine.
3. Choose how interest is charged. Most cards use a daily rate; pick Monthly to compare with simpler textbook examples.
4. Read the answer, then open Show steps for the working, the comparison table for other choices, the balance chart and the full payment schedule (monthly or yearly).

The tool assumes you stop using the card. New purchases, fees or a rate change will make the real payoff take longer.

How credit card interest is calculated

Credit cards quote an annual rate, the APR, but charge interest on a daily or monthly basis. According to the CFPB, many issuers use a daily periodic rate: the APR divided by 365 (or 360, depending on the issuer). Interest for each day is added to the balance, so it compounds daily.

The CFPB’s sample card agreement describes the average daily balance method: add up the balance at the end of each day in the billing cycle, divide by the number of days, then multiply by the daily rate and by the number of days in the cycle.

When you make no new purchases and pay at the end of the cycle, the average daily balance is simply your balance plus the interest added during the month. That gives a monthly rate of

r = (1 + APR ÷ 365)^{365 ÷ 12} − 1

For a 22% APR, the daily rate is 0.22 ÷ 365 ≈ 0.00060274, and r ≈ 0.0184968, or about 1.85% a month. On a $5,000 balance the first month’s interest is about $92.48. A card that used APR ÷ 12 instead would charge $91.67, so daily compounding costs a little more.

Credit card payoff formulas

A fixed payment works like a loan payment, so the same two formulas apply. With B the balance, r the monthly rate, M the payment and n the number of months:

• Months to pay off: n = −ln(1 − B × r ÷ M) ÷ ln(1 + r). Round up, because the last payment is a partial one.
• Payment to clear the balance in n months: M = B × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1).

The first formula only works when the payment is larger than the first month’s interest (B × r). If it is not, the balance never goes down.

Worked example: months to pay off a credit card

You owe $5,000 at 22% APR and pay $200 a month.

1. Monthly rate with daily interest: r ≈ 0.0184968.
2. Check the payment: B × r ≈ $92.48, which is less than $200, so the balance falls.
3. n = −ln(1 − 5,000 × 0.0184968 ÷ 200) ÷ ln(1.0184968) ≈ 33.87, so it takes 34 payments.
4. The schedule gives 33 payments of $200 and a last payment of $173.30. Total paid: $6,773.30, of which $1,773.30 is interest.

To finish in 24 months instead, the formula gives M ≈ $259.88, and total interest drops to $1,236.98.

Payoff time for a $5,000 balance at 22% APR

Going from $100 to $150 a month cuts more than 7 years and over $6,000 of interest, because $100 barely covers the $92.48 of first-month interest.

The minimum payment trap

Many cards set the minimum as a small percentage of the balance plus that month’s interest, with a dollar floor. Your card agreement states the exact rule, so the calculator lets you enter it. As the balance falls, the minimum falls too, and most of each payment goes to interest.

Take $5,000 at 22% with a minimum of 1% of the balance plus interest and a $25 floor. The first minimum is $50.92 + $92.48 = $143.40, but only $50.92 of it reduces what you owe. Paying only the minimum takes 228 months (19 years) and costs $8,038.00 in interest, more than the original balance.

Keeping the payment fixed at that first $143.40 every month clears the card in 4 years 9 months with $3,101.92 of interest. Paying $191.46 clears it in 3 years with $1,892.58 of interest. Card statements show a similar warning: the CFPB’s Regulation Z repayment rules require an estimate of how long minimum payments take and the monthly payment that repays the balance in 36 months.

Is a balance transfer worth it?

A balance transfer moves debt to a card with a low promotional APR, usually for a fee charged as a percentage of the amount moved. To compare fairly, add the fee to the interest you will pay on the new card, then compare that total with the interest you would pay by staying.

Example: $5,000 at 22% APR, paying $200 a month. Staying costs $1,773.30 in interest. Moving it with a 3% fee ($150) to 0% for 15 months, then 22%, costs $150 + $269.37 = $419.37, a saving of $1,353.93. But $2,150 is still owed when the promo ends. Paying $343.34 a month would clear the full $5,150 before the promo ends.

A transfer can cost more than it saves when the fee is high, the promo period is short, or the rate after the promo is higher than your current APR. The calculator shows both sides with your numbers.

Common mistakes

• Dividing the APR by 12 and stopping there. With a daily rate, interest compounds within the month, so the real cost is slightly higher.
• Assuming the minimum stays the same. A percentage-based minimum shrinks as the balance shrinks, which is what stretches payoff over many years.
• Forgetting the transfer fee. A 0% promo is not free when the new card charges a fee up front; count the fee as part of the cost.
• Adding new purchases. Any new charge goes onto the balance you are trying to pay off, and you may lose the grace period on purchases while you carry a balance.

These results are estimates for planning, not financial advice. Your issuer’s statement is the final word on your balance and interest.

Sources

Checked November 2026.

• CFPB: What is a “daily periodic rate” on a credit card?
• CFPB: Credit card contract definitions (average daily balance, daily periodic rate, grace period)
• CFPB: Regulation Z, Appendix M1, Repayment disclosures
• CFPB: Understanding minimum payments

Credit card payoff practice quiz: 10 questions

Test yourself with 10 multiple-choice questions. Choose an answer and press Submit to see if you are right and why. Your score appears at the end.

Frequently asked questions

How long will it take to pay off my credit card?

Use n = −ln(1 − B × r ÷ M) ÷ ln(1 + r) and round up, or enter your balance, APR and payment above. For example, $5,000 at 22% APR paid at $200 a month takes 34 months.

How is credit card interest calculated each month?

Many issuers divide the APR by 365 to get a daily rate and apply it to each day's balance, so interest compounds daily. With no new purchases, a 22% APR works out to about 1.85% a month.

Why does paying only the minimum take so long?

A minimum of a small percentage plus interest repays very little principal, and it shrinks as the balance shrinks. On $5,000 at 22%, a 1%-plus-interest minimum takes 19 years.

What payment pays off a credit card in 3 years?

Use M = B × r × (1 + r)³⁶ ÷ ((1 + r)³⁶ − 1). For $5,000 at 22% APR with daily interest, that is $191.46 a month.

Should I pay off the card with the highest APR first?

Paying extra on the highest-APR balance saves the most interest; paying off the smallest balance first gives quicker wins. Our debt payoff calculator compares both orders with your own debts.

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