Credit Card Payoff Calculator
See exactly when you will be debt-free and how much your credit card costs in interest. See what difference extra payments make.
💰 Financial Disclaimer: This calculator is for educational purposes only. Consult a qualified financial professional.
How It Works
Simulates monthly repayment: applies interest to balance, subtracts your payment, and repeats until balance reaches zero.
Formula
Each month:
Interest = Balance × (APR/12)
New Balance = Balance + Interest − Payment
Example
$5,000 balance, 20% APR, $150/month:
Month 1 interest: $83.33. Payoff: ~47 months. Total interest: ~$2,015.
When to Use This Calculator
Use when choosing a payoff strategy to see the true cost of minimum payments vs a fixed amount and to set a realistic debt-free date.
Common Mistakes to Avoid
- Only paying the minimum — minimums maximize interest revenue for the lender.
- Making new purchases while paying off — this assumes no new charges.
- Not comparing balance transfer fees — a 3–5% fee may be worth the 0% rate savings.
Frequently Asked Questions
Minimum payment time?
A $5,000 balance at 20% APR with 2% minimum payments takes 25+ years and costs more in interest than the original balance.
Debt avalanche method?
Pay minimums on all cards, apply extra to highest-APR card first. Minimizes total interest.
Should I use a personal loan?
Personal loans at 10–15% APR can save significantly vs 20–30% credit card APR.
Credit score for 0% transfer?
Most 0% offers require 690+ credit score with 12–21 month transfer periods.
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Last Updated: July 4, 2026