Credit Card Payoff Calculator

When to use it

A credit card balance is a small loan with an unusually high rate, and the monthly statement hides how long it will last. This page takes the balance, the annual rate and the payment you intend to make, and returns the number of months, the total paid and the interest inside that total.

It is the tool for deciding which card to attack first, for setting a payment that clears a balance by a chosen month, and for seeing what a minimum-style payment really costs. It assumes the card is not used again and the rate never changes, so treat the result as an estimate rather than a promise. The card issuer sets the real rate, the minimum payment and any fees, and their terms and decision are the ones that count.

How the maths works

Each month the card charges interest of balance × APR ÷ 12. Your payment clears that interest first, and only the remainder reduces the capital. The loop repeats until the balance reaches zero, capped at 1,200 months.

That order is why a small payment can stall: at 18% on 5,000 the monthly interest is 75.00, so a payment of 75 leaves the balance untouched forever. The page refuses a payment at or below that line and tells you the figure it must beat.

A worked example

5,000 at 18% with a payment of 150 a month.

1. Month 1 interest: 5,000 × 0.18 ÷ 12 = 75.00, so 75.00 goes to the balance, leaving 4,925.00.
2. Month 2 interest: 4,925 × 0.015 = 73.88, so 76.13 reduces the balance.
3. The gap widens slowly: after a year the balance is still above 3,900.
4. Result: 47 payments, 6,983.60 paid in total, of which 1,983.60 is interest.

Payment against months

All on the same 5,000 at 18%. Tripling the payment from 100 to 300 cuts the months from 94 to 20 and the interest by more than 3,500 — the relationship is nowhere near linear.

Common mistakes

• Paying less than the monthly interest. The balance then grows instead of falling, and the page reports the minimum that would work.
• Using the card while paying it off. New spending joins the balance and resets the clock; the estimate assumes a frozen card.
• Forgetting that rates move. A promotional rate that ends in six months changes the whole schedule; rerun with the standard rate to see the difference.
• Comparing balances rather than rates. A smaller balance at 29% can outlast a larger one at 12%; clear by cost of interest, not by size.

Keep exploring

• Loan Payment Calculator — the same amortisation for a fixed-term loan.
• Compound Interest Calculator — why interest on a growing balance accelerates.
• Loan Affordability Calculator — what a payment supports when borrowing instead of repaying.