Credit Card Payoff Calculator
Find out how long it takes to clear a credit card balance and how much interest it costs.
Written by Rahman · Last reviewed
Quick answer
On a $5,000 balance at 22% APR, paying $150 a month clears it in 52 months and costs about $2,798 in interest; raising the payment to $250 clears it in 26 months for $1,286. Paying two-thirds more each month halves the time and saves you roughly $1,500. Interest compounds monthly: the balance grows by balance × (APR ÷ 12), then your payment is subtracted. And because minimum payments are typically only 1% to 3% of the balance, paying the minimum can stretch repayment across decades.
Results are estimates for general guidance and are not financial, tax or legal advice. Except where a calculator names a currency, figures carry no currency of their own: put in pounds and you get pounds back, put in rupees and you get rupees. Figures depend on the assumptions you enter and on rates that change over time. Check current rates and speak to a qualified adviser before acting on them.
About the Credit Card Payoff Calculator
Credit cards charge interest on any balance you carry from month to month, and the annual rates (APR) are typically high. Paying only the minimum each month can stretch repayment over many years and multiply the total cost.
This calculator shows how long it will take to clear your balance at a chosen monthly payment, and how much interest that path will cost, making the value of larger payments clear.
Each month: interest = balance × (APR ÷ 12), then balance = balance + interest − payment.
The process repeats until the balance reaches zero. If the payment is smaller than the first month’s interest, the balance never reduces.
Why a percentage-based minimum barely moves the balance
Card minimums are usually a percentage of what you owe, and that's exactly why the debt lasts so long. As the balance falls, the required payment falls with it, so the payment shrinks at almost the same rate as the debt.
At high APRs the numbers are sobering. At 22% the monthly interest charge is 1.833% of the balance. If the minimum is 2% of the balance, then in the first month only 0.167% of what you owe actually goes to principal, under a sixth of one percent. The rest is interest.
- Paying a fixed amount instead of the minimum breaks the pattern, because the payment no longer falls as the balance does.
- The gap between the interest rate and the minimum percentage is what decides how fast you make progress. When they're close, repayment can stretch out for decades.
- Any new spending on the card sets you back again, because the balance the minimum is worked out from goes back up.
That's why the calculator asks for a fixed monthly payment rather than a minimum percentage. A flat payment is easier to plan around, and much, much faster.
What raising the payment actually buys
Because interest builds up on whatever you still owe, paying more doesn't just cut the cost in proportion. It cuts it far faster than that. The effect compounds, because a smaller balance next month generates less interest, which leaves more of the following payment available for principal.
On a $5,000 balance at 22% APR, paying $150 a month clears it in about 52 months at a total interest cost of roughly $2,800. Raising the payment to $250 (an increase of two thirds) clears it in about 26 months for roughly $1,285 of interest. The payment went up 67%, the time fell by exactly half, and the interest bill fell by around $1,500.
- Avalanche order: paying the highest APR first across multiple cards minimises total interest.
- Snowball order: paying the smallest balance first costs slightly more but closes accounts sooner, which some people find easier to stick with.
- Balance transfers: a 0% promotional period can help, but the transfer fee is typically 3% to 5% of the amount moved, which is $150 to $250 on a $5,000 balance, and the rate reverts at the end of the promotional window.
Frequently Asked Questions
Why is paying only the minimum so costly?
⌄
The minimum payment barely covers interest, so the principal shrinks very slowly. A balance can take years (even decades) to clear, costing far more than the original purchase.
What if my payment is too low?
⌄
If your monthly payment is less than the interest charged, the balance grows instead of shrinking. The calculator warns you and shows the minimum payment needed to make progress.
How can I pay off a card faster?
⌄
Pay more than the minimum, stop adding new charges, and consider a lower-rate balance transfer or consolidation loan if available.
Does APR change?
⌄
Card APRs can change with market rates or your account status. This calculator assumes a constant APR for the payoff period.
Sources
- 12 CFR § 1026.7(b)(12) — Regulation Z, periodic statement disclosures (eCFR) — Federal regulation requires every credit card statement to carry, in bold, the "Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance", alongside a minimum-payment repayment estimate and the estimated monthly payment that would clear the balance in 36 months. That the disclosure is mandated is the strongest available evidence for the central point of this page.