How to use the credit card payoff calculator
- Choose I know my monthly payment to see how long it will take, or I have a payoff goal to find the payment that clears the card in a set number of months.
- Type your Current balance and APR (yearly interest rate) from your latest statement. The 22% starting rate is close to the Federal Reserve's 22.15% average for card accounts that paid interest in the second quarter of 2026.
- Enter your Monthly payment, or the Months to be debt-free you are aiming for.
- Read the payoff time, total interest and debt-free month, then compare your plan with the minimum-only row or open the Month-by-month schedule.
How the payoff is calculated
Each month the card adds interest of balance × APR ÷ 12, and the rest of your payment reduces the balance. This repeats until the balance is zero, and the last payment is smaller. For a goal, the payment comes from the standard loan formula, rounded up to the next cent:
payment = balance × r ÷ (1 − (1 + r)−n)
Here r is the APR ÷ 12 and n is the number of months. Issuers charge interest daily on your average daily balance, so a statement can differ from this monthly estimate by a few dollars.
The minimum-only row assumes the month's interest plus 1% of the balance, with a $25 floor. Issuers differ: the CFPB's Regulation Z sample uses 2% of the balance or $20, whichever is greater.
Worked example
The calculator opens with a $5,000 balance at 22% APR and a $200 payment. The first month's interest is $5,000 × 0.22 ÷ 12 = $91.67, so only $108.33 of that payment reduces the balance. The card is paid off in 34 months (2 years 10 months), with $1,749.88 in interest and $6,749.88 paid in total. Paying only the minimum ($141.67 the first month, falling toward $25) would take 230 months, or 19 years 2 months, and cost $8,099.77 in interest. Doubling the payment to $400 clears the card in 15 months for $731.60. In goal mode, 24 months needs $259.40 a month.
Limits and edge cases
- The rate is fixed and nothing new is charged. A new purchase, fee or late payment pushes the payoff date back.
- If your payment is not larger than the first month's interest ($91.67 here), the balance never falls, so the calculator asks for a bigger payment.
- Promotional rates that expire are not modeled. For a balance transfer, add the transfer fee to the balance and enter 0 to see the promo-period payment.
- Several cards need one run each. For a fixed-rate loan, use the loan payoff calculator. To see how card payments weigh on lenders, try the debt-to-income calculator.
Frequently asked questions
How long will it take to pay off my credit card?
It depends on the balance, the APR and your payment. A $5,000 balance at 22% APR takes 34 months at $200 a month and 15 months at $400.
How much do I need to pay each month to clear $5,000 in 24 months?
At 22% APR you need $259.40 a month. Switch to I have a payoff goal, then enter your own balance, APR and months.
How is a credit card minimum payment calculated?
Issuers usually set it as that month's interest and fees plus about 1% of the balance, or as a flat percentage of the balance, with a dollar floor such as $25. Your statement shows your exact minimum.
Should I pay off the card with the highest APR first?
Paying the highest APR first (the avalanche method) costs the least interest. Paying the smallest balance first (the snowball method) costs a little more but gives quick wins that keep many people going.
Does paying off a credit card early hurt my credit score?
No. Paying down a balance lowers your credit utilization, which usually helps your score. Keeping the account open at a zero balance preserves your available credit.
Sources: Federal Reserve, Consumer Credit G.19 (22.15% average rate on card accounts assessed interest, Q2 2026); CFPB, how card interest is calculated; CFPB, Regulation Z Appendix M2. Estimates only, not financial advice.