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Your statement gave you an APR. Here is what that rate does.
This is the Credit Card Payoff Calculator.
APR means annual percentage rate, the interest rate on your statement. Enter that rate, your balance, and your payment to estimate a payoff date and total interest. Or pick a target date to see the estimated payment needed.
How this calculator works
- Each month: interest = balance × APR ÷ 12, rounded to the cent, then your payment is subtracted.
- The last payment is only what is left, so it is usually smaller.
- If your payment does not cover the monthly interest, the balance never goes down and we tell you so.
- Paying only the minimum is shown for comparison. The minimum is a percent of the balance plus that month's interest, with a dollar floor (default 1% + interest, at least $25). Both numbers are assumptions you can edit; issuers differ.
- Assumes no new purchases and a fixed APR.
Results are estimates for planning, based only on the numbers you enter. Your lender's statement is the final word. See the full methodology and how we test the math.
Two ways to use it
- How long will it take? Enter your balance, APR and monthly payment. You’ll see how many months it takes, your debt-free month, the total interest and the size of the last payment.
- What should I pay? Enter the number of months you want to be debt-free in. You’ll see the fixed monthly payment that gets the balance to $0 in that time.
A worked example
These are test cases on our methodology page: a $5,000 balance at 24% APR.
- Paying $200 a month clears it in 36 months with $2,000.57 in interest.
- Paying $150 a month takes 56 months and costs $3,322.17 in interest.
So the extra $50 a month saves 20 months and $1,321.60. At this APR, the first month’s interest is $100. Part of every payment goes to interest before it reduces the balance, so small increases in your payment can make a big difference.
What paying only the minimum costs
A common formula is 1% of the balance plus that month’s interest, with a dollar floor, but issuers differ, so check your card agreement. In our test case, a $3,000 balance at 22% APR with that formula and a $25 floor takes 180 months to pay off and costs $4,433.02 in interest. The calculator shows the same comparison for your card.
Tips that change the result
- Stop adding new charges to the card you’re paying off. The calculator assumes no new purchases.
- Pay a fixed amount, not the minimum. Minimums shrink as the balance falls, which stretches out the payoff.
- Watch for promo rates ending. If part of your balance is on a promotional APR, the math changes when it ends. For a 0% offer, use the balance transfer calculator.
- More than one card? Compare payoff orders in the snowball vs avalanche calculator.
If your payment doesn’t cover the interest
If your monthly payment is less than the interest charged that month, the balance never falls. The calculator tells you so and shows the first month’s interest. A larger payment is the only way through with these numbers. You could also consider talking to your card issuer about hardship options; only they can tell you what’s available.
What this calculator assumes
Interest is added monthly at APR ÷ 12 and rounded to the cent. Payments are made at the end of each month, and the APR stays fixed. Most card issuers calculate interest on your average daily balance, so your statement may differ by a few dollars. The results are estimates for planning; your statement is the final word. See the full methodology and our disclaimer.
Paying down more than one card?
The Debt Payoff Planner Pro spreadsheet lists every card in one place, compares payoff orders with your real numbers, and logs each payment you make.