Credit Card Payoff Calculator

How to use Credit Card Payoff Calculator

1. Enter your balance and the card's annual percentage rate.
2. Choose whether you know your monthly payment or want to clear the card in a set number of months.
3. Set the minimum-due percentage and floor from your statement to see the minimum-payment trap.
4. Study the first-year table and the comparison with paying only the minimum.

How card interest builds up

Each month interest is roughly the balance multiplied by APR divided by 12. Whatever you pay beyond that interest reduces the balance. If your payment is less than or equal to the monthly interest, the balance never goes down. For a fixed payment the number of months is n = -ln(1 - B x r / payment) / ln(1 + r), and for a target number of months the payment equals the standard EMI formula for that balance, rate and period.

A card balance is a loan with no fixed schedule, so deciding on a payment you stick to is the single most useful step.

A verified worked example

Take a 50,000 balance at an example APR of 36%, a monthly rate of 3%. Paying 3,000 a month, the first month's interest is 1,500, so the balance falls to 48,500. The balance is cleared after 24 months and interest totals 20,360.29. To be clear in 12 months instead you would pay 5,023.10 a month and total interest would be 10,277.25.

Now suppose the card's minimum due were 5% of the balance with a floor of 500. Paying only that minimum would take 111 months, over nine years, and cost 65,499.46 in interest, more than the original balance itself.

• Pay as much above the minimum as you can, and avoid adding new purchases while paying off.
• Consider asking your bank about balance transfers or instalment conversion, but compare total cost, fees included.
• Pay the full statement balance when possible to avoid interest entirely if your card offers a grace period.

Limits and privacy

The calculator assumes a constant APR, no new spending, no fees and payments made on time every month. Estimates only, not financial advice. Example values in the fields are not current market rates; always use the figures in your lender's sanction letter.

Your balance and rate are used only in your browser.

Why use this credit card payoff calculator tool

• Two planning modes. Find months for a payment you choose, or the payment needed for a deadline.
• Minimum-payment trap. Shows how long, and how costly, paying only the minimum would be.
• First-year table. Twelve rows of interest, payment and balance.
• Never-ending warnings. If the payment does not beat monthly interest, you are told clearly.

Frequently asked questions

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