Pay off debt

Credit Card Payoff Calculator

Your credit card details

Your total payment each month, not an amount added to the estimated minimum.

Estimated minimum payments use the greater of 2% of the current balance or $35. Your first estimated minimum payment is $100.00. This amount is recalculated every month and generally decreases as the balance falls. Your fixed monthly payment stays the same until the final payment. Actual credit-card minimum-payment formulas vary by issuer and card agreement. See below for more assumptions and limitations.

Estimated payoff time

Loading estimate

First estimated minimum payment
Estimated payoff date
Total interest
Total amount paid
Number of monthly payments

Credit card balance over time

For educational purposes only. This is not financial advice. Seek appropriate professional advice before making any financial decisions.

Understanding a credit card payoff

This calculator estimates payoff time and interest under an estimated minimum payment and a fixed monthly payment.

Why minimum payments can take so long

Estimated minimum payments usually become smaller as the balance falls. This may make the monthly bill easier to manage, but it also slows how quickly the remaining balance is reduced.

At the beginning, a larger share of each payment may go toward interest. As the balance falls, the interest charge usually becomes smaller.

Why a fixed monthly payment changes the result

A fixed payment stays the same as the balance and interest charge decline. That leaves more of each later payment to reduce the amount owed and can shorten the payoff time and reduce total interest.

For example, continuing to pay $200 instead of allowing the payment to fall with the balance may shorten the payoff period and reduce total interest.

What the minimum payment does and does not do

The minimum payment is the amount required to keep the account current under the card agreement. It can avoid a late payment, but it may leave much of the balance in place. A larger fixed payment can reduce the balance faster, while a smaller payment leaves more time for interest to be charged. Each card issuer uses its own minimum-payment formula.

Key takeaway

Minimum payments can keep the monthly bill lower, but keeping your payment from shrinking can help you pay off the balance sooner and pay less interest.

Helpful terms

Balance
The amount currently owed on the card.
APR
The annual percentage rate used to describe the card’s interest cost.
Minimum payment
The smallest payment required for a billing period.
Fixed monthly payment
A payment amount that stays the same as the balance falls.
Interest
The cost charged for carrying the balance.
Principal
The part of a payment that reduces the balance.
Payoff time
The estimated amount of time needed for the balance to reach zero.
Total interest
The estimated interest paid from now until the balance is paid off.

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