About this calculator
Credit card interest is the most expensive money most people ever borrow, and the minimum payment is designed to keep it that way — it typically covers the interest plus only about 1% of the balance, so the payoff stretches over many years. Choosing a fixed payment you can sustain, and watching the payoff date move closer as you raise it, is the fastest way out.
This calculator assumes you stop charging new purchases to the card and pay the same fixed amount every month. Every extra $50 a month matters more than you would expect, because it all goes to principal once interest is covered.
How to use it
- Enter your current balance and the card's APR (on your statement, or in your card app).
- Enter a fixed monthly payment you can genuinely sustain — not the minimum.
- Note the payoff time and total interest, then try raising the payment by $25–$100 to see what it saves.
The formula
There is no simple closed-form shortcut most people can use by hand, so the calculator simulates the balance month by month — exactly the way your card issuer's charges accumulate. The payoff month is the first month the balance reaches zero.
Worked example
An $8,000 balance at 22% APR with a $250 monthly payment takes 49 months to clear — just over 4 years — and costs $4,158.37 in interest, more than half the original balance. Raising the payment to $350 clears it in about 30 months and cuts the interest roughly in half. (Minimum payments would take far longer still.)
Frequently asked questions
Why is paying only the minimum so bad?
Minimum payments are usually calculated as interest plus about 1% of the balance, so they shrink as the balance shrinks — the payoff slows down precisely as you make progress. An $8,000 balance at 22% APR paid at typical minimums can take well over a decade and cost more in interest than the original balance.
Should I pay off the card with the highest APR or the smallest balance first?
Mathematically, highest APR first (the "avalanche") always costs the least. Behaviorally, some people stick with a plan better when they clear small balances first (the "snowball") for motivation. The best plan is the one you will actually finish — but run the avalanche numbers here before deciding the quick wins are worth their extra cost.
Does a balance transfer help?
It can: moving a balance to a 0% promotional APR stops interest for 12–21 months, so every dollar of payment hits principal. Watch the transfer fee (usually 3%–5% of the balance) and have a plan to finish before the promotional rate expires, because the remaining balance then jumps to a high APR.
Will paying off my card improve my credit score?
Usually yes. Lower balances reduce your credit utilization, a major scoring factor. The improvement can appear within a billing cycle or two after the lower balance is reported.