Credit Card Payoff Calculator

How Credit Card Payoff Works

Credit cards charge interest every month on your remaining balance. Each payment first covers that month's interest; whatever is left reduces the principal. The higher your APR and the smaller your payment, the more of each payment is eaten by interest — which is why a low payment can keep you in debt for years.

The Minimum Payment Trap

Most cards set the minimum payment at around 2% of the balance (with a small dollar floor). Because that amount shrinks as the balance falls, paying only the minimum stretches payoff out dramatically and multiplies the interest. Paying a fixed amount each month — even a little above the minimum — clears the balance far faster.

How to Pay Off Faster

• Pay a fixed amount each month instead of the shrinking minimum.
• Put any extra toward the highest-APR card first (the avalanche method).
• Consider a 0% balance-transfer offer to pause interest while you pay down principal.

See the monthly payment math on the Loan Calculator, or how interest accrues on the Interest Calculator. Browse payoff times by balance starting at $5,000.

Estimates use your APR and payment with standard monthly compounding. Your card's terms, fees and minimum-payment formula may differ. Not financial advice.