See your debt-free date and total interest cost. Compare minimum payments vs. a fixed monthly amount.
Average US credit card APR: ~22%. Check your statement for your exact rate.
Min payment (~2%): $100.00/mo
Minimum Payments (~2%)
Fixed $200/mo
💡 Your fixed payment saves $8,087 in interest and pays off 9.5 years sooner!
The Credit Card Payoff Calculator shows exactly how long it will take to pay off a balance at a given APR with a fixed monthly payment, and how much that balance will cost you in total interest along the way.
Credit card interest typically compounds daily but is applied to your statement monthly, so even a 'low' 18-22% APR adds up fast on a revolving balance. By comparing a fixed payment against the typical 2% minimum, you can see in real dollars how much faster — and cheaper — it is to pay more than the minimum each month.
Balanceₙ = Balanceₙ₋₁ + (Balanceₙ₋₁ × APR/12) − PaymentEach month, interest accrues on the remaining balance at the monthly periodic rate (APR ÷ 12), and your fixed payment is then subtracted. This repeats until the balance reaches zero — that month count is your payoff time, and the sum of all the interest charges is your total interest cost.
Example 1: $5,000 balance at 22.49% APR, $200/month
Monthly periodic rate = 22.49% ÷ 12 ≈ 1.874%. Each month, interest of roughly $94 (on the starting balance) is added before your $200 payment is applied.
Payoff in about 30 months (2.5 years) — total interest paid ≈ $1,030.
Example 2: Same $5,000 balance, minimum payments only (~2%)
Minimum payment starts around $100/month and shrinks as the balance drops, so interest keeps eating into a smaller and smaller portion of each payment.
Payoff takes over 13 years — total interest paid balloons to roughly $4,300, more than 4x the fixed-payment scenario.
Example 3: $8,000 balance at 26.99% APR, $350/month
A higher-rate rewards card with a larger balance — monthly periodic rate ≈ 2.25%.
Payoff in about 27 months — total interest paid ≈ $1,520. Bumping the payment to $450/mo cuts it to roughly 19 months and about $1,010 in interest.
Methodology
Balance reduced monthly by: payment − (balance × APR/12). Minimum payment floor: 2% of balance or $25. Payoff reached when balance < $0.01. Debt-free date calculated from today's date.
Minimum payments are typically 1–2% of the balance. Most of that goes to interest — very little reduces principal. On a $5,000 balance at 22% APR, paying 2% minimums could take over 20 years and cost $6,000+ in interest. This calculator shows the exact difference.
Two strategies: (1) Avalanche — pay the highest-rate card first while making minimums on others (minimizes total interest), and (2) Snowball — pay the smallest balance first (provides psychological momentum). Consider consolidating to a lower-rate personal loan if your credit qualifies.
If you can qualify for a personal loan at a rate below your credit card APR (often the case for scores above 680), consolidation can save significant interest and give you a clear payoff timeline. Our Personal Loan Calculator can help you model the comparison.
Disclaimer: Calculations are for informational purposes only and do not constitute professional financial advice. Please consult with a certified professional before making financial decisions.