Credit Card Payoff Calculator

Credit card payoff calculator for fixed monthly payments

This credit card payoff calculator estimates how long it will take to pay off a credit card balance when you make a fixed monthly payment. It also estimates the total interest you will pay, the total amount you will pay in all, and an estimated payoff date. The goal is simple: help you decide whether your current payment is enough to get out of debt in a timeframe that feels acceptable, and show the hidden cost of interest along the way.

The dominant use case is someone who already knows what they can afford to pay each month and wants to answer a single decision: “If I pay this amount every month, how long am I stuck with this card balance?” That is why the default inputs are just balance, APR, and monthly payment. If you want a slightly more realistic estimate without adding complexity, you can optionally add an extra monthly amount and a one-time lump sum payment you plan to make right now.

Your results are based on monthly compounding, which is how most credit card interest is applied in practice. Each month, interest is calculated on the remaining balance, then your payment reduces what is left. Because interest is calculated on a smaller balance as you pay it down, the payoff accelerates over time, assuming your monthly payment stays consistent. If your payment is too low to cover the interest being added, the balance will not meaningfully fall and payoff becomes impossible without increasing the payment, reducing the interest rate, or adding a lump sum.

Assumptions and how to use this calculator

• The monthly interest rate is APR divided by 12, and interest compounds monthly.
• Your monthly payment is treated as fixed and made once per month until the balance reaches zero.
• The optional lump sum is applied immediately before the first month of interest in the payoff simulation.
• Fees, penalty APR, promotional periods, and new purchases are not included. Adding new spending will extend payoff time.
• The payoff date is an estimate based on the current date and the number of months required, not the exact statement cycle dates.

Common questions

Why does my payoff time look so long even with a decent payment?

High APRs make the early months expensive because interest is calculated on the full balance. If your payment is only slightly higher than the monthly interest, most of what you pay goes to interest at the start. Increasing your payment even a little can shorten payoff time disproportionately because it reduces principal faster, which reduces future interest.

What does “payment is too low to cover interest” mean?

It means your monthly payment is less than or equal to the interest that accrues in a typical month at your current balance and APR. In that case, the balance will shrink extremely slowly or not at all. To fix it, increase the payment, add an extra monthly amount, make a lump sum payment, or reduce the APR through a lower-rate card or a negotiated rate.

Should I include my card’s minimum payment or what I actually pay?

Use what you actually plan to pay. Minimum payments are designed to stretch payoff out and maximize interest. If you only know the minimum right now, you can start with it to see how bad the timeline is, then adjust the payment upward until the payoff timeframe becomes acceptable.

Do I need to enter the exact APR from my statement?

Exact is better, but an estimate still gives a useful range. If you do not know the precise APR, use the rate shown in your banking app or statement summary. If your APR can change (variable rate), treat this result as a best-effort estimate at the current rate.

What if I keep using the card while trying to pay it off?

Then this result is not valid. New purchases add to the balance, generate interest, and can prevent payoff entirely. If your goal is payoff, stop using the card or move spending to a separate card that you pay in full each month, otherwise the payoff timeline will keep moving out.