Debt · Payoff

Credit Card Payoff Calculator

Credit card debt is the most expensive debt most people will ever carry. With average APRs around 22%, a $5,000 balance making minimum payments can take over 15 years to pay off and cost more in interest than the original purchase. The good news: even small increases in your monthly payment dramatically cut both time and total cost.

This calculator shows you exactly when you'll be debt-free at any payment level, how much interest you'll pay, and how much you save by paying extra. It also compares multiple payment strategies side by side so you can find the approach that works for your budget.

At $200/month, you'll be debt-free in 2 years 10 months. You'll pay $1,750 in interest — that's 25.9% of your total payments. Minimum payment would be ~$142/month.

Your credit card

$

Total amount you owe

Average credit card APR: ~22% (2026)

$

Minimum: ~$142

Debt-free date

2y 10m

$6,750 total · $1,750 interest

Payoff summary

Time to pay off

2y 10m

34 total payments

Total interest paid

$1,750

25.9% of total paid

Total amount paid

$6,750

$5,000 principal + $1,750 interest

How extra payments save you money

Compare payoff time and interest at different payment levels

Minimum payment

$142/mo

4y 10m

$3,121

interest

$200/month

$200/mo

2y 10m

$1,750

interest

$250/month

$250/mo

2y 2m

$1,286

interest

$300/month

$300/mo

1y 9m

$1,022

interest

Payment breakdown

MonthPaymentPrincipalInterestBalance
1$200$108$92$4,892
2$200$110$90$4,781
3$200$112$88$4,669
4$200$114$86$4,555
5$200$117$84$4,438
6$200$119$81$4,319
7$200$121$79$4,199
8$200$123$77$4,076
9$200$125$75$3,950
10$200$128$72$3,823
11$200$130$70$3,693
12$200$132$68$3,561
18$200$148$52$2,714
24$200$165$35$1,770
30$200$183$17$718
34$150$147$3$0

How to use this calculator

Current balance — The total amount you owe on your credit card. You can find this on your most recent statement. Include all cards if you're planning to pay them off one at a time.

APR (%) — Your card's annual percentage rate. The national average is ~22% (2026). Check your statement — some cards have different rates for purchases vs. cash advances. Use the highest rate for a conservative estimate.

Monthly payment — The amount you plan to pay each month. Must exceed the monthly interest charge to make progress. The calculator shows your minimum payment as a reference — paying only the minimum is the slowest and most expensive path.

Real-world examples

$5,000 at 22% APR — minimum vs. aggressive

Minimum payment (~$110/mo): 15+ years, ~$7,500 in interest — you pay more in interest than you originally borrowed. At $250/mo: 2 years, ~$1,100 interest. At $500/mo: 1 year, ~$500 interest. Going from minimum to $250/mo saves 13+ years and $6,400.

$10,000 at 24% APR — the power of $100 extra

At $300/mo: 4.5 years, ~$6,200 interest. At $400/mo: 3 years, ~$4,000 interest. Just $100 more per month saves 1.5 years and $2,200. That extra $100 goes entirely to principal, accelerating payoff exponentially.

$2,000 at 18% APR — small balance, quick kill

At $100/mo: 2 years, ~$400 interest. At $200/mo: 11 months, ~$170 interest. Small balances can be eliminated quickly with modest extra payments. The snowball method works well here — kill the smallest balance first, then redirect that payment to the next card.

Formula & Methodology

Monthly interest calculation

Monthly Interest = Balance × (APR / 12)
  • APR = Annual Percentage Rate (decimal)
  • Interest compounds monthly on the remaining balance

Payoff calculation (iterative)

Each month: Interest = Balance × (APR/12), Principal = Payment - Interest, New Balance = Balance - Principal

The calculator iterates month by month until the balance reaches zero. This accurately models how credit card interest works — each month's interest is calculated on the remaining balance after the previous payment.

Minimum payment formula

Min Payment = max($25, 1% of Balance + Monthly Interest)

This is a typical minimum payment formula used by major issuers. Some use 2% of balance or interest + 1%. The calculator uses the most common formula.

Assumptions & limitations

  • APR is assumed fixed. Many cards have variable rates that change with the prime rate.
  • No new charges are added during the payoff period.
  • Does not account for balance transfer offers or promotional rates.
  • Minimum payment formula varies by issuer. Check your card agreement for the exact formula.

Frequently asked questions

Should I pay off credit cards or invest?
Credit card APR (avg ~22%) is much higher than expected investment returns (~7-10%). Pay off high-interest debt first — it's a guaranteed "return" equal to your APR. After the debt is gone, redirect those payments to investing.
What's the avalanche vs snowball method?
Avalanche: pay the highest-interest card first (saves the most money). Snowball: pay the smallest balance first (psychological wins). Mathematically, avalanche wins. Psychologically, snowball works better for some people. Pick whichever you'll stick with.
How much should I pay above the minimum?
As much as you can afford. Even $50 extra per month on a $5,000 balance at 22% APR can save you over a year of payments and hundreds in interest. Every dollar above the minimum goes directly to principal.
Can I negotiate my APR?
Yes. Call your card issuer and ask for a lower rate. They'll often comply if you have a good payment history. A 5% reduction on a $5,000 balance can save you hundreds over the payoff period.
Disclaimer: This calculator assumes a fixed APR and no new charges. Actual payoff may vary. For educational purposes only.