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Free Tool

Credit Card Payoff Calculator

See how long your balance really takes to clear, what the interest actually costs you, and how much of your life you buy back by paying more than the minimum. No signup, no email, nothing to install.

Quick answer

Enter your balance, your APR and what you pay each month. The calculator amortizes the balance month by month and shows the payoff date and total interest, next to what the same balance would cost if you only ever paid the minimum. The gap between those two numbers is the real cost of minimum payments.

Your card

Paid off in
2y 2m
26 payments
Total interest
$1,350
You repay $6,350
Interest as % of balance
27%

Paying only the minimum instead: 19y 4m and $8,414 in interest. Paying $250 a month saves you $7,064 and 17y 2m.

Your balance over time, against minimum payments

123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960616263646566676869707172737475767778798081828384858687888990919293949596979899100101102103104105106107108109110111112113114115116117118119120Months$0k$2k$3k$5k$6k
  • Paying $250/mo
  • Minimum only

What you actually hand over

$0k$4k$7k$11k$14kYour paymentMinimum only
  • Your balance
  • Interest

Minimum payments are modelled as the greater of $25 or 1% of the balance plus that month's interest, which is the most common issuer formula. Your card's terms may differ, so check your statement.

How the calculation works

Interest is charged on the balance each month at one twelfth of the APR. Your payment covers that interest first, and only what is left reduces the principal. The calculator runs that loop one month at a time rather than using a formula, because the minimum payment changes every month as the balance falls.

Why minimum payments take decades

A minimum payment is set as a percentage of the balance, so it shrinks as the balance shrinks. The payment keeps falling just fast enough to keep you in debt. That is the mechanism, and it is why a balance that would clear in two years at a fixed payment can take eighteen at the minimum.

Paying more, even a little, compounds backwards

Every extra dollar goes entirely to principal, because the interest was already covered. That dollar then stops accruing interest for the whole remaining life of the balance. It is the only part of this you control, and it is worth more the earlier you do it.

Frequently asked questions

Interest accrues each month at one twelfth of the APR on the current balance. Your payment covers that interest first and the remainder reduces the principal. The calculator repeats that month by month until the balance reaches zero, which is why it can model a minimum payment that shrinks as the balance falls.

A minimum payment is usually a percentage of the balance, commonly 1% plus that month's interest, with a floor around $25. Because it is a percentage, it falls as the balance falls. The payment keeps shrinking just fast enough to keep the balance alive, which is how a two year payoff becomes an eighteen year one.

The balance grows every month and never clears, no matter how long you pay. The calculator detects this and tells you the minimum monthly amount that would start reducing the principal instead of showing an impossible schedule.

Early. An extra dollar paid today goes entirely to principal, since the interest for that month was already covered, and that dollar then stops accruing interest for the entire remaining life of the balance. The same dollar paid in the final year saves almost nothing.

It is free and it asks for nothing. There is no signup, no email, no credit pull and no account. The math runs entirely in your browser and none of the numbers you type are sent anywhere.
AK

Written by

Alexander Katsman

Founder, Credit Booster & Credit Booster AI

Alexander Katsman has spent more than 15 years in credit and finance, helping thousands of people and small business owners dispute inaccurate reporting, rebuild their scores, and get approved for funding they were once denied. His latest project, Credit Booster AI, puts that entire toolkit in everyone's hands, using AI to make fixing, building, and funding your credit accessible to all.

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