FINANCIAL · DEBT / CREDIT CARD PAYOFF
Debt / Credit Card Payoff Calculator
Find out exactly how long it will take to pay off your debt and how much interest you'll pay. Compare minimum payments vs. fixed payments.
| Your Payment | Min. Payment | |
|---|---|---|
| Months to pay off | 50 mo | 524 mo |
| Total interest | $2,359.09 | $20,210.57 |
| You save | $17,851.48 interest · 474 mo sooner | |
| Period | Remaining Balance |
|---|---|
| Mo 6 | $4,583 |
| Mo 12 | $4,122 |
| Mo 18 | $3,614 |
| Mo 24 | $3,052 |
| Mo 30 | $2,432 |
| Mo 36 | $1,747 |
| Mo 42 | $991 |
| Mo 48 | $156 |
| Mo 50 | $0 |
Showing 5 of 5 years
| Year | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| Year 1 | $1,800 | $878 | $922 | $4,122 |
| Year 2 | $1,800 | $1,070 | $730 | $3,052 |
| Year 3 | $1,800 | $1,305 | $495 | $1,747 |
| Year 4 | $1,800 | $1,591 | $209 | $156 |
| Year 5 | $159 | $156 | $3 | $0 |
| Total | $7,359 | $5,000 | $2,359 | — |
About This Calculator
Enter your balance, APR, and monthly payment to see your payoff timeline and total interest paid. See how a higher fixed payment compares to making only minimum payments.
How It Works
Enter your current balance, annual interest rate (APR), and your chosen monthly payment. The calculator shows how many months until you are debt-free and how much total interest you will pay. It also runs a minimum-payment comparison (2% of balance, $25 minimum floor) so you can see exactly how much faster — and how much cheaper — your fixed payment is. A full month-by-month payoff schedule is included.
The Formula
n = ⌈−ln(1 − r×P/M) / ln(1+r)⌉
- n
- months to full payoff
- P
- current balance
- M
- monthly payment
- r
- monthly rate (APR ÷ 12)
- ln
- natural logarithm
Frequently Asked Questions
- How is credit card interest calculated?
- Credit cards charge interest on the average daily balance. The daily rate is your APR ÷ 365. Interest compounds daily, which is why balances grow quickly when only minimum payments are made.
- What happens if my payment only covers the interest?
- If your monthly payment equals or is less than the monthly interest charge, you are making no progress on the principal — your balance will never decrease. This is called a debt trap. The calculator will warn you and ask you to increase your payment.
- Why does paying more than the minimum save so much?
- Minimum payments on credit cards are intentionally set low — often 2% of the balance. This keeps most of your payment going toward interest rather than principal. Paying a fixed higher amount each month dramatically shortens the payoff period and cuts total interest paid.