Credit Card Payoff Calculator
FinanceEnter your card balance and APR, then choose to find the months a payment takes or the payment a payoff date needs. You get the total interest, the payment for other payoff times and what extra payments save.
Step by step
$10,000.00 at 22%, $400.00 → 34 months
- Balance $10,000.00 at 22%: the first month adds $183.33 of interest, which is the balance × APR / 12.
- Each month the interest is added and then $400.00 is paid, except in the last month, when only what is left is paid (just once if a single payment clears the balance). The payment is more than the interest, so the balance falls every month. Until the last month it falls a little faster each month at any APR above 0%, because less of each payment goes to interest; at a 0% APR it falls by exactly the payment.
- The balance reaches zero after 34 months (2.8 years), and the last payment is $299.76.
- You pay $13,499.76 in all, of which $3,499.76 is interest. That is 25.9% of everything you pay.
Once every entry is valid, you’ll see each step of the calculation here.
Formula
- B
- the balance you owe now
- APR
- the yearly interest rate as a decimal: 22% is 0.22
- r
- the monthly rate, the APR divided by 12 (0.22 / 12 = 0.018333)
- P
- the monthly payment
- n
- months to pay off, rounded up; the last payment is at most the regular payment
- N
- the number of months you choose for the payoff
How it works
A credit card charges interest on what you still owe. This calculator takes the APR from your statement and divides it by 12 for a monthly rate, an assumption the federal repayment disclosure rules (Regulation Z, 12 CFR part 1026, appendices M1 and M2) allow as well. Each month the interest on the balance is added first and your payment is subtracted next. If the payment is more than the interest, the balance shrinks, and at any APR above 0% it shrinks faster every month because less of each payment goes to interest. If it is not, the balance is never paid off: it stays the same when the payment equals the interest and grows when the payment is less. Card issuers usually figure interest daily on your average daily balance, so your statement can differ a little from this estimate.
Take $10,000 at 22% with $400 a month. The first month adds $10,000 × 0.22 / 12 = $183.33 of interest, so $216.67 of the first payment reduces the balance. The balance reaches zero after 34 months: 33 payments of $400 and a last payment of $299.76, $13,499.76 in all, of which $3,499.76 is interest. The number of months is n = −ln(1 − B × r / P) / ln(1 + r), rounded up, with B the balance, r the monthly rate and P the payment. To choose the payoff time N instead, the payment is P = B × r / (1 − (1 + r)^−N). For $30,000 at 22% over 36 months that is $1,145.71, the kind of figure card issuers must print on each statement as the payment that repays the balance in 36 months.
The two tables help you pick a plan. The first shows the payment that clears the same balance in 12 to 72 months, so you can see how a longer payoff lowers the payment and raises the interest. The second adds $25 to $500 to your payment: for $10,000 at 22%, an extra $100 a month ends the debt in 26 months instead of 34 and saves $928.31 in interest. The result assumes no new purchases, no fees and no change of rate. A card with a promotional rate or several balances at different rates needs one run for each. Any single debt with a fixed rate works the same way, and the loan calculator shows a fixed-term loan with its schedule.
The formula
The month-by-month rule behind both formulas is balance × (1 + r) − payment. The formula for n is what that rule gives after n months when the balance reaches zero, and the formula for P is the same rule solved for the payment that leaves exactly zero after N months. At a rate of 0 the months are simply B / P and the payment is B / N. The calculator runs the balance forward one month at a time, which gives the same months without rounding trouble at whole months. Nothing is rounded until the result is shown.
If P is not more than B × r, the first month’s interest, the balance never falls and the calculator reports that the payment is too low. A payoff that would take more than 100 years is treated the same way. New purchases, fees, a changing rate and an interest-free grace period are not part of the model.
Example
How long does it take to pay off $10,000.00 at 22% paying $400.00?
- The monthly rate is 22% / 12 = 1.8333%, so the first month adds $183.33 of interest and $216.67 of your $400 reduces the balance.
- Month by month the balance reaches zero at n = −ln(1 − 183.33 / 400) / ln(1.018333) = 33.7, which rounds up to 34 months.
- That is 33 payments of $400 and a last payment of $299.76: $13,499.76 in all, so $3,499.76 goes to interest.
- With $100 more each month the table shows 26 months and $2,571.45 of interest, which is $928.31 less.
Paying $400.00 on a $10,000.00 balance at 22% takes 34 months (2.8 years). You pay $3,499.76 in interest, $13,499.76 in all.
Load this example into the calculatorFrequently asked questions
How long will it take to pay off $25,000 in credit card debt?
It depends on the payment. At a 22% APR, $750 a month takes 52 months (4 years and 4 months) and costs $13,990.25 in interest. $1,000 a month takes 34 months and $8,749.40, and $1,500 a month takes 21 months and $5,108.00. Enter your own APR from your statement and your payment above, or choose a payoff time to see the payment it needs.
How to pay down $30,000 in credit card debt?
Pick the payment or the payoff date first. At 22% APR, $1,145.71 a month clears $30,000 in 36 months with $11,245.69 of interest, $828.57 takes 60 months and $19,714.04, and $1,556.34 takes 24 months and $7,352.27. Stop adding new charges, pay more than the minimum, and send any extra to the card with the highest APR if you have several. A lower-rate transfer or loan can cut the interest, but check its fee and when the offer ends.
What is the formula for credit card payoff?
With r the monthly rate (the APR divided by 12), B the balance and P the monthly payment, the months to pay off are n = −ln(1 − B × r / P) / ln(1 + r), rounded up. The payment that clears the balance in N months is P = B × r / (1 − (1 + r)^−N). For $10,000 at 22% and $400 a month, n = 33.7, so 34 months. The payment must be more than B × r, the first month’s interest.
How is credit card interest calculated?
Many card companies figure the interest you owe daily from your average daily balance, according to the CFPB. This calculator uses the simpler monthly rate, the APR divided by 12, which Regulation Z also allows for its repayment estimates. If your card compounds daily it charges a bit more: on $10,000 at 22% the first month would add about $184.97 instead of $183.33, and the 34-month payoff about $47 more in interest.
How much should I pay on my credit card each month?
As much as you can above the minimum, because every dollar above the interest reduces the balance that earns interest next month. The table on this page shows the payment for a payoff in one to six years: for $10,000 at 22% it is $935.94 for 12 months, $381.90 for 36 months and $251.26 for 72 months. Pick the payoff time your budget allows.
What happens if I only pay the minimum?
A minimum payment is often a share of the balance, such as 2% or $20, whichever is greater, which is the example in Regulation Z, appendix M2. It shrinks as you pay, so the debt can last for years. Federal rules (12 CFR 1026.7(b)(12)) make card issuers print a Minimum Payment Warning on each statement, with the time and total cost of paying only the minimum and the monthly payment that would repay the balance in 36 months. Compare that payment with the one this calculator gives.
Does paying extra each month make a big difference?
Yes. On $10,000 at 22% with $400 a month, adding $25 cuts the payoff from 34 to 32 months and saves $293.07 in interest. An extra $100 ends the debt in 26 months and saves $928.31, and an extra $500 ends it in 13 months and saves $2,213.41. The table under the result shows these steps for your own numbers.
What APR should I enter?
Use the purchase APR shown on your latest statement. If you carry balances at different rates, such as purchases and a balance transfer, run each balance with its own rate. On one card, any amount you pay above the minimum generally goes first to the balance with the highest rate, according to the CFPB. A variable APR can change, and a promotional rate that ends needs one run for each period.
Why does the calculator say my payment is too low?
The first month adds interest of balance × APR / 12, which is $183.33 on $10,000 at 22%. If your payment is not more than that, the balance never falls and there is no payoff date. A payment only slightly above the interest works but takes very long: $184 on that balance takes 310 months and $46,924.29 of interest. Raise the payment to shorten it.
Should I pay off my highest-rate card first?
If you have several cards and can pay extra on only one, the extra saves the most interest on the card with the highest APR, which is called the avalanche method. Paying the smallest balance first, the snowball method, costs a little more interest but clears cards sooner, which keeps some people motivated. Pay at least the minimum on every card. To compare, run each balance with its rate through this calculator.
Is a balance transfer or a debt consolidation loan worth it?
It can be, if the new rate is lower after fees. A balance transfer usually charges a fee on the amount moved, and a promotional rate lasts for a limited time, after which the regular APR applies. Add the fee to the balance and run the new rate here. A fixed-rate loan has a set payment and end date, and the loan calculator shows how its interest adds up.
Can I use this calculator for other debts?
Yes, for any single debt with a fixed rate, a fixed monthly payment and no new borrowing, such as a store card, a medical payment plan or a personal loan. Choose "Payment needed" to find the payment for a loan with a set term, or "Months to pay off" to see how long your payment takes. What it does not model is a minimum payment that changes each month.
Does this calculator include new purchases, fees or a grace period?
No. It assumes you stop using the card, pay the same amount every month and keep the same APR. Late fees, annual fees and new purchases would add to the balance, and a grace period only helps when you pay the whole statement balance. If you keep charging, subtract the new charges from your payment to see the real progress.
- 12 CFR 1026.7: Periodic statement (repayment disclosures) (Legal Information Institute, Cornell Law School)
- Appendix M1 to Part 1026: Repayment Disclosures (Legal Information Institute, Cornell Law School)
- Appendix M2 to Part 1026: Sample Calculations of Repayment Disclosures (Legal Information Institute, Cornell Law School)
- How does my credit card company calculate the amount of interest I owe? (Consumer Financial Protection Bureau)