Credit Card Payoff Calculator
Credit cards charge high interest on a revolving balance, so a fixed monthly payment can take far longer to clear the debt than people expect — and below a certain payment it never clears at all. This calculator shows how many months a given payment takes to wipe out your balance, the total interest you will hand over along the way, and the single most overlooked number in card debt: the minimum payment your balance needs before it starts shrinking instead of growing.
- Principal
- Interest
- Total interest
- $1,978.87
- Total paid
- $7,978.87
- Minimum to make progress
- $110.00
At this rate you pay about 1,979 in interest over 32 months — roughly 33% of the balance. Raising your monthly payment shortens the timeline sharply, because every extra dollar above the interest goes straight to wiping out principal.
How it works
Each month interest is added to your balance based on the APR, and your payment is applied. Whatever is left after covering that month’s interest reduces the principal. As the principal falls, the monthly interest falls too, so a steady payment chips away faster and faster toward the end.
The catch is the first month’s interest. If your payment is smaller than the interest charged that month, the balance actually rises — you owe more than before despite paying. No fixed payment at or below that threshold can ever clear the debt; the math simply has no solution. That is why a "minimum payment" set as a tiny percentage of the balance can keep someone in debt almost indefinitely.
This calculator guards against that trap. When your payment is too low it tells you so and shows the exact amount you must exceed to start making real progress. When the payment is viable it returns the payoff timeline and the total interest cost.
Months to clear = −ln(1 − (B · i) / PMT) / ln(1 + i), where B = balance, i = APR ÷ 12 ÷ 100, and PMT = fixed monthly payment. This only has a solution when PMT > B · i — the first month’s interest. If the payment is equal to or below that interest, the balance never amortizes and the debt is mathematically unpayable at that payment.
Worked example
Suppose you owe 6,000 on a card at 22% APR and pay a fixed 250 a month. The first month’s interest is 6,000 × (22 ÷ 1200) = 110, so 250 comfortably clears it and 140 goes to principal. The balance is paid off in about 32 months, and you hand over roughly 1,979 in interest — about 33% on top of what you borrowed — for a total of around 7,979. Now drop the payment to 100 a month: that is below the 110 first-month interest, so the balance never falls and the debt is mathematically unpayable. The calculator flags this and tells you that you must pay more than 110 a month just to begin reducing the balance.
Things to watch out for
A 0% promotional APR makes the payoff a simple division of balance by payment with no interest, so any positive payment clears it eventually. Real cards often set the required minimum payment as a small percentage of the balance, which can sit barely above the interest line — clearing the debt in theory but over decades, with enormous total interest. The break-even payment shown here is the floor below which nothing works; paying well above it is where the real savings are. New purchases on the card during payoff are not modelled — they reset your progress, so this assumes you stop adding to the balance.
Frequently asked questions
Why does paying the minimum keep me in debt for years?+
Card minimums are often just a small percentage of the balance, set only slightly above the monthly interest. Almost all of each payment goes to interest, leaving the principal barely touched. Paying a fixed amount well above the minimum — rather than a shrinking percentage — is what actually clears the debt in a reasonable time.
What is the minimum payment to actually reduce my balance?+
It must exceed the first month’s interest: balance × APR ÷ 12. Anything at or below that is entirely consumed by interest, so the balance never falls. This calculator shows that exact threshold, and warns you when your entered payment is below it.
How much does raising my payment help?+
A lot, and non-linearly. Because interest is charged on the balance, every extra dollar above the interest goes straight to principal and removes future interest too. Increasing a payment even modestly can cut both the months and the total interest substantially — try a higher figure in the field to see the effect.
Should I consider a balance transfer or consolidation loan?+
If you can move the balance to a much lower rate, far more of each payment attacks the principal, so you clear the debt faster and cheaper. Weigh any transfer fee against the interest saved. A fixed-rate consolidation loan can also turn an open-ended card balance into a defined payoff schedule.
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Disclaimer: This calculator is for educational and informational purposes only and provides estimates, not financial advice. Interest rates, taxes, fees, and local rules vary and change over time. Confirm figures with a qualified professional before making any financial decision.
Last reviewed: 2026-06-22