Credit card debt can feel overwhelming with APRs often exceeding 20%. This calculator shows exactly how long your debt will take to pay off at your current payment rate and how much interest you will accumulate. Use it to plan payoff strategies — even increasing your monthly payment by a small amount can save thousands in interest.
Payoff Time:
Total Interest:
Enter values and click Calculate to see chart
How to Use This Tool
Enter your current credit card balance.
Enter the APR (annual percentage rate) of your card.
Enter how much you can pay each month.
Click Calculate to see your payoff timeline and total interest cost.
Try different monthly payment amounts to see how they affect your payoff date.
The Formula
The payoff timeline is calculated iteratively: each month, Interest = Balance x Monthly APR. New balance = Previous Balance + Interest - Payment. This repeats month by month until the balance reaches zero.
Why It Matters
You have an $8,000 credit card balance at 22.9% APR and can only afford $250/month minimum payments — it will take over 4 years and $3,800 in interest. What if you increased your payment to $350/month? This calculator shows you would save $1,100 in interest and pay off the card 10 months earlier.
Frequently Asked Questions
What is the difference between the snowball and avalanche methods?
The debt snowball method pays off your smallest balances first while making minimum payments on the rest, building momentum with quick wins. The avalanche method targets your highest-interest debts first, which saves the most money overall. The snowball approach is psychologically motivating because you see accounts closing faster, while avalanche is mathematically optimal. Research shows snowball actually works better for many people because the behavioral motivation leads to higher adherence.
How is my minimum payment calculated?
Most credit cards calculate minimum payments as the sum of accrued interest, fees, and a small percentage (usually 1-2%) of the principal balance. This means minimum payments are designed to keep you in debt for decades at high interest. For example, an $8,000 balance at 22% APR with a 2% minimum payment could take over 40 years to pay off and cost nearly $20,000 in interest. Always aim to pay significantly more than the minimum.
Should I consolidate my credit card debt?
Debt consolidation combines multiple high-interest debts into a single loan, typically with a lower interest rate. A balance transfer card with a 0% APR introductory period can save thousands in interest if you can pay off the balance within the promo window. Personal loan consolidation simplifies payments and may lower your rate, but be cautious of origination fees and variable rates that could increase. Consolidation only works if you address the spending habits that created the debt in the first place.
What happens if I only pay the minimum on my credit cards?
Paying only the minimum extends your payoff timeline dramatically and costs enormous amounts in interest. On a typical $5,000 balance at 19% APR, you would pay roughly $10,000 in interest and take 30+ years to clear it. Your credit score will also suffer from high credit utilization, and you may miss out on better financial opportunities. Minimum payments are designed to protect the issuer, not to help you escape debt.
How does credit utilization affect my credit score?
Credit utilization is the ratio of your current balances to your credit limits, and it accounts for about 30% of your FICO score. Keeping utilization below 30% is generally recommended, and below 10% is ideal for the best scores. Paying down balances not only saves interest but immediately improves your credit score. Closing old cards can hurt your utilization ratio, so keep them open with zero balances whenever possible.