Credit Card Payoff Calculator

A $5,000 credit card balance at 22.99% APR, paid off at a fixed $250 a month, takes 26 months and costs $1,365.57 in interest. The first month's interest alone is $95.79, so only $154.21 of that first $250 payment reduces the balance. Pay a shrinking minimum instead, using an illustrative formula of 1% of the balance plus interest, and the same card takes 232 months, over 19 years, and costs $8,488.94 in interest.

Those are the two numbers that matter: how long, and how much interest. This guide shows where they come from. It covers how issuers turn your APR into an interest charge, why the minimum payment takes so long, full payoff tables by balance, APR and payment, the monthly payment that clears a balance by a target date, when a balance transfer saves money, and how card payments feed into a debt-to-income ratio.

The 22.99% figure is the default APR in the Credit Card Payoff Calculator. It is used here as a worked example, not as a quote of today's rates. Your card's APR is printed on your statement and in your cardholder agreement. Use that number.

How is credit card interest calculated?

Credit card interest is calculated in three steps. The APR is converted into a daily periodic rate, that rate is applied to your average daily balance, and the result is multiplied by the number of days in the billing cycle. The interest charge on your statement is the output.

Step 1: turn the APR into a daily periodic rate

The APR (annual percentage rate) is a yearly figure. Issuers commonly divide it by 365 to get a daily rate:

daily periodic rate = APR ÷ 365

At 22.99% APR: 22.99% ÷ 365 = 0.062986% per day, or 0.00062986 as a decimal. Your cardholder agreement states the exact divisor and balance method your issuer uses, and many statements print the daily periodic rate next to the APR, so check both if you want to reconcile a statement to the cent.

Many cards carry more than one APR, for example one for purchases, one for cash advances and one for balance transfers. Each balance is charged at its own rate.

Step 2: find the average daily balance

A common method, and the one named in many cardholder agreements, is the average daily balance. The issuer records your balance at the end of each day in the billing cycle, adds those daily balances together and divides by the number of days in the cycle. Purchases raise the balance from the day they post and payments lower it from the day they are credited, so the timing of both changes the interest.

average daily balance = sum of each day's balance ÷ days in the billing cycle

Step 3: a worked billing cycle

Take a 30-day billing cycle on a card at 22.99% APR:

Days	What happened	Balance each day	Days × balance
1 to 10	Starting balance	$5,000	$50,000
11 to 20	$400 purchase posts on day 11	$5,400	$54,000
21 to 30	$1,000 payment credited on day 21	$4,400	$44,000
Total			$148,000

• Average daily balance: $148,000 ÷ 30 = $4,933.33
• Interest for one day: $4,933.33 × 0.00062986 = $3.1073
• Interest for the cycle: $3.1073 × 30 = $93.22

Two things move that figure. If the $1,000 payment had been credited on day 1 instead of day 21, the balance would have been $1,000 lower for 20 more days. That is $20,000 fewer balance-days, and $20,000 × 0.00062986 = $12.60 less interest for the cycle. Paying earlier in the cycle is free money.

The second is compounding. Some issuers compound daily, adding each day's interest to the balance that the next day's interest is charged on. In this cycle, daily compounding brings the charge to about $94.10 instead of $93.22. Your agreement says which method your card uses.

Why the payoff calculator uses APR divided by 12

The Credit Card Payoff Calculator does not track days. It charges one month of interest at a time, at APR ÷ 12, on the balance at the start of the month. Your fixed payment covers that interest first and the rest reduces the balance, and it repeats until the balance reaches zero. It assumes no new purchases, no fees and one APR for the whole payoff. If the payment is equal to or smaller than the first month's interest, it tells you the balance never clears.

On a steady $5,000 at 22.99%, the monthly method gives $5,000 × 22.99% ÷ 12 = $95.79. The daily method on the same steady balance gives $94.48 for a 30-day cycle and $97.63 for a 31-day cycle ($5,000 × 0.00062986 × 30, or × 31). Across a full year the 365 daily rates add up to the APR, so the monthly method lands close to what the daily method charges over the life of a payoff. It will not match a single statement to the cent, and it is not meant to. It answers how long and how much in total.

The grace period, and how you lose it

On many cards, if you pay the full statement balance by the due date, new purchases are charged no interest. That window is the grace period, and your cardholder agreement says whether your card has one. Carry a balance past the due date and the grace period is usually lost, so new purchases start accruing interest from the day they post until you have paid in full again, which can take more than one cycle. That is why the card you are paying down is the wrong card to keep spending on.

Credit card interest calculator: interest on common balances

For a quick answer to "how much interest will I pay on my balance", multiply the balance by the APR and divide by 12. The table does that for common balances. The APR columns are sample inputs chosen to show the spread, not current market rates. The last column divides by 365 instead, giving the daily charge at 22.99%.

Balance	15% APR	18% APR	20% APR	22.99% APR	25% APR	29.99% APR	Per day at 22.99%
$500	$6.25	$7.50	$8.33	$9.58	$10.42	$12.50	$0.31
$1,000	$12.50	$15.00	$16.67	$19.16	$20.83	$24.99	$0.63
$2,000	$25.00	$30.00	$33.33	$38.32	$41.67	$49.98	$1.26
$3,000	$37.50	$45.00	$50.00	$57.48	$62.50	$74.98	$1.89
$5,000	$62.50	$75.00	$83.33	$95.79	$104.17	$124.96	$3.15
$7,500	$93.75	$112.50	$125.00	$143.69	$156.25	$187.44	$4.72
$10,000	$125.00	$150.00	$166.67	$191.58	$208.33	$249.92	$6.30
$15,000	$187.50	$225.00	$250.00	$287.38	$312.50	$374.88	$9.45
$20,000	$250.00	$300.00	$333.33	$383.17	$416.67	$499.83	$12.60

Reading it:

• $1,000 on a credit card at 22.99% APR costs $19.16 a month in interest, about $0.63 a day.
• $5,000 at 22.99% costs $95.79 a month. A payment of $95.79 or less never reduces the balance, which is exactly the case the calculator flags.
• $10,000 at 29.99% costs $249.92 a month. A $250 payment clears 8 cents of principal in the first month.

These are first-month figures. As the balance falls the interest falls with it, so the payoff tables further down are the better guide to total cost.

Why paying only the minimum takes so long

A minimum payment keeps the account in good standing. It is not designed to clear the debt quickly. Because minimums are usually calculated from the balance, they fall as the balance falls, and the smaller the payment gets, the more slowly the balance drops. The last few hundred dollars can take years.

How issuers set the minimum payment

There is no single minimum payment formula. Each issuer sets its own and describes it in the cardholder agreement. Formulas commonly take one of these shapes:

• a small percentage of the balance, plus that month's interest and any fees
• a small percentage of the balance on its own
• a fixed floor amount, used whenever the percentage works out lower
• the whole balance, once the balance is below the floor

The percentage, the floor and what gets added on all vary by issuer, so the only reliable source for your card is your own statement and agreement. What matters is the shape. If the minimum is a percentage of a shrinking balance, the payment shrinks too.

A worked minimum payment example

To show the effect, take an illustrative formula: 1% of the balance plus that month's interest, with a $25 floor. These numbers are chosen for the example, not taken from any issuer. Apply it to $5,000 at 22.99% APR with no new purchases:

• Month 1 interest: $5,000 × 22.99% ÷ 12 = $95.79
• Month 1 minimum: 1% of $5,000 ($50.00) + $95.79 = $145.79
• Balance after month 1: $5,000 + $95.79 − $145.79 = $4,950.00

Each payment only takes 1% off the balance, so the balance, and the payment with it, falls slowly:

Month	Minimum payment	Balance after payment
1	$145.79	$4,950.00
12	$130.53	$4,431.92
24	$115.70	$3,928.39
36	$102.56	$3,482.07
60	$80.58	$2,735.78
120	$44.09	$1,496.90

After five years of payments the balance is still $2,735.78. After ten years it is $1,496.90. The card is finally clear in month 232, 19 years and 4 months in, after $8,488.94 of interest. That is well over the $5,000 originally borrowed.

The minimum payment warning on your statement

US card statements carry a minimum payment warning box because of the Credit CARD Act of 2009. Using your actual balance and APR, it shows:

• a warning that paying only the minimum increases the interest you pay and the time it takes to repay
• how long it would take to pay off the balance paying only the minimum
• the estimated total cost if you pay only the minimum
• the monthly payment that would pay off the balance in 36 months, and the total cost at that payment
• a phone number for information about credit counseling

The box assumes no new charges, the same assumption the payoff calculator makes. It is the quickest way to see your own issuer's minimum payment figures, because it uses the issuer's real formula rather than an illustration. The requirement sits in the Truth in Lending Act and Regulation Z and has exceptions, so confirm the details with the Consumer Financial Protection Bureau.

Credit card minimum payment calculator: minimum vs fixed payment

The payoff calculator takes a fixed monthly payment. It does not calculate a minimum payment from an issuer's formula. That is the useful comparison anyway, because the biggest improvement for the least extra money is to stop the minimum from shrinking: take this month's minimum and keep paying that same dollar amount every month.

Using the same illustrative formula (1% of the balance plus interest, $25 floor) at 22.99% APR, here are months to pay off and total interest:

Balance	First minimum	Paying the shrinking minimum	Fixed at the first minimum	Fixed at double the first minimum
$1,000	$29.16	72 months, $825.63	57 months, $644.28	21 months, $223.89
$2,000	$58.32	141 months, $2,741.47	57 months, $1,288.57	21 months, $447.78
$3,000	$87.48	182 months, $4,657.24	57 months, $1,932.85	21 months, $671.67
$5,000	$145.79	232 months, $8,488.94	57 months, $3,221.87	21 months, $1,119.54
$7,500	$218.69	273 months, $13,278.54	57 months, $4,832.58	21 months, $1,679.26
$10,000	$291.58	301 months, $18,068.11	57 months, $6,443.74	21 months, $2,239.07

Two patterns stand out:

• Freezing the first minimum clears any of these balances in 57 months. Under this formula the first payment is always the same share of the balance, 1% plus 22.99% ÷ 12, which is 2.916%. On $5,000 it cuts the interest from $8,488.94 to $3,221.87, and the first month costs nothing extra.
• Doubling that first payment cuts the time to 21 months and the interest by roughly two-thirds again, from $3,221.87 to $1,119.54 on $5,000.

To run your own card, enter your balance and APR in the calculator, then enter this month's minimum from your statement as the monthly payment. The result is what freezing the minimum gets you. Then try a round number above it and watch the months fall.

How long does it take to pay off credit card debt?

The time to pay off a credit card depends on three inputs: the balance, the APR and the fixed monthly payment. There is a formula for it:

months = −ln(1 − balance × r ÷ payment) ÷ ln(1 + r), where r = APR ÷ 12

Worked for $5,000 at 22.99% paying $250:

• r = 22.99% ÷ 12 = 0.0191583
• balance × r ÷ payment = $95.79 ÷ $250 = 0.38317
• ln(1 − 0.38317) = −0.48316, and ln(1.0191583) = 0.018977
• months = 0.48316 ÷ 0.018977 = 25.46

That is 25 full payments and a smaller 26th, and the calculator reports 26 months. If balance × r is equal to or larger than the payment, the value inside the logarithm is zero or negative. That is the maths telling you the payment never clears the balance.

The tables below were generated the way the calculator works, month by month at APR ÷ 12, with total interest rounded to the nearest dollar. The APRs are sample inputs, not current rates.

How long to pay off $5,000 in credit card debt

Months to pay off and total interest on a $5,000 balance:

APR	$150 a month	$200 a month	$250 a month	$300 a month	$400 a month	$500 a month
15%	44 mo, $1,509	31 mo, $1,033	24 mo, $790	19 mo, $642	14 mo, $471	11 mo, $375
18%	47 mo, $1,984	32 mo, $1,314	24 mo, $989	20 mo, $797	14 mo, $579	11 mo, $458
20%	50 mo, $2,359	33 mo, $1,522	25 mo, $1,133	20 mo, $907	15 mo, $654	12 mo, $515
22.99%	54 mo, $3,045	35 mo, $1,871	26 mo, $1,366	21 mo, $1,081	15 mo, $771	12 mo, $604
25%	58 mo, $3,625	36 mo, $2,137	27 mo, $1,535	21 mo, $1,206	15 mo, $853	12 mo, $666
29.99%	73 mo, $5,878	40 mo, $2,943	29 mo, $2,017	22 mo, $1,548	16 mo, $1,070	12 mo, $826

At $250 a month, going from 15% to 29.99% APR adds 5 months and $1,227 of interest. At 22.99%, going from $150 to $500 a month cuts the payoff from 54 months to 12 and the interest from $3,045 to $604. The APR is set by the card. The payment is the part you control.

How long to pay off $10,000 in credit card debt

Months to pay off and total interest on a $10,000 balance:

APR	$250 a month	$300 a month	$400 a month	$500 a month	$750 a month	$1,000 a month
15%	56 mo, $3,950	44 mo, $3,017	31 mo, $2,065	24 mo, $1,579	15 mo, $1,009	11 mo, $750
18%	62 mo, $5,386	47 mo, $3,967	32 mo, $2,628	24 mo, $1,978	15 mo, $1,241	11 mo, $916
20%	67 mo, $6,617	50 mo, $4,718	33 mo, $3,044	25 mo, $2,266	16 mo, $1,404	12 mo, $1,030
22.99%	77 mo, $9,153	54 mo, $6,091	35 mo, $3,742	26 mo, $2,731	16 mo, $1,659	12 mo, $1,209
25%	87 mo, $11,725	58 mo, $7,251	36 mo, $4,273	27 mo, $3,071	16 mo, $1,838	12 mo, $1,332
29.99%	325 mo, $71,088	73 mo, $11,757	40 mo, $5,886	29 mo, $4,034	17 mo, $2,317	12 mo, $1,653

The 29.99% row at $250 a month is the extreme case. The first month's interest is $249.92, so the payment barely touches the balance, and payoff takes 325 months, over 27 years, with $71,088 of interest. Add $50 a month and it drops to 73 months and $11,757. A payment close to the monthly interest charge mostly buys time.

Compare the $500 column here with the $250 column in the $5,000 table. The months are the same at every APR and the interest is double. Scaling the balance and the payment by the same factor keeps the payoff time the same and scales the interest by that factor.

Payoff time for $1,000 to $20,000 at 22.99% APR

Months to pay off and total interest at 22.99% APR. "Never" means the payment is at or below the first month's interest, so the balance does not fall.

Balance	$100 a month	$200 a month	$300 a month	$500 a month	$750 a month	$1,000 a month
$1,000	12 mo, $121	6 mo, $62	4 mo, $44	3 mo, $30	2 mo, $24	2 mo, $20
$2,000	26 mo, $546	12 mo, $242	8 mo, $161	5 mo, $101	3 mo, $74	3 mo, $59
$3,000	46 mo, $1,506	18 mo, $571	12 mo, $363	7 mo, $218	5 mo, $152	4 mo, $120
$5,000	167 mo, $11,694	35 mo, $1,871	21 mo, $1,081	12 mo, $604	8 mo, $402	6 mo, $308
$7,500	Never	67 mo, $5,857	35 mo, $2,807	18 mo, $1,427	12 mo, $906	9 mo, $675
$10,000	Never	167 mo, $23,389	54 mo, $6,091	26 mo, $2,731	16 mo, $1,659	12 mo, $1,209
$15,000	Never	Never	167 mo, $35,083	46 mo, $7,529	26 mo, $4,097	18 mo, $2,854
$20,000	Never	Never	Never	77 mo, $18,307	38 mo, $8,266	26 mo, $5,462

A few rows answered directly:

• $3,000 in credit card debt at $100 a month takes 46 months and $1,506 of interest. At $300 a month it takes 12 months and $363.
• $5,000 at $100 a month takes 167 months, almost 14 years, because $95.79 of the first $100 is interest.
• $15,000 at $300 a month also takes 167 months, with $35,083 of interest. At $500 it is 46 months.
• $20,000 at $300 a month never clears. The first month's interest is $383.17.

Credit card payment calculator: the payment that clears a balance in 1 to 5 years

If you have a deadline, work backwards to the payment. This table shows the fixed monthly payment that clears each balance in 12, 24, 36, 48 or 60 months at 22.99% APR, rounded up to the next cent so the payoff lands within the target.

Balance	12 months	24 months	36 months	48 months	60 months
$1,000	$94.08	$52.37	$38.71	$32.05	$28.19
$2,000	$188.15	$104.74	$77.41	$64.10	$56.37
$3,000	$282.22	$157.11	$116.12	$96.14	$84.56
$5,000	$470.36	$261.85	$193.53	$160.23	$140.93
$7,500	$705.54	$392.77	$290.29	$240.35	$211.39
$10,000	$940.72	$523.69	$387.05	$320.46	$281.85
$15,000	$1,411.08	$785.53	$580.57	$480.69	$422.78
$20,000	$1,881.43	$1,047.37	$774.10	$640.92	$563.70

Total interest paid at those payments, for two of the balances:

Balance	Clear in 12 months	Clear in 24 months	Clear in 36 months	Clear in 48 months	Clear in 60 months
$5,000	$644.29	$1,284.15	$1,966.70	$2,691.04	$3,455.09
$10,000	$1,288.57	$2,568.36	$3,933.55	$5,382.07	$6,910.70

Stretching $5,000 from one year to five lowers the payment from $470.36 to $140.93, and raises the interest from $644.29 to $3,455.09. A lower payment is easier each month and more expensive in total, and the table shows exactly how much more.

The 36-month column matches the horizon in the minimum payment warning box on a US statement, so you can set it beside your own statement. The two will not agree to the cent, because the statement uses your issuer's own interest method.

The monthly payment formula, worked

payment = balance × r ÷ (1 − (1 + r)^−n), where r = APR ÷ 12 and n = the number of months

For $5,000 over 36 months at 22.99%:

• r = 22.99% ÷ 12 = 0.0191583
• balance × r = $5,000 × 0.0191583 = $95.79
• (1.0191583)^−36 = 0.50501, so 1 − 0.50501 = 0.49499
• payment = $95.79 ÷ 0.49499 = $193.52, rounded up to $193.53

The calculator works in the other direction. It takes the payment and returns the months. Enter a $5,000 balance, 22.99% APR and a $193.53 payment and it returns 36 months, which is a quick way to confirm a payment you have worked out by hand.

Is a balance transfer worth it?

A balance transfer moves debt from one card to another, usually to use a lower promotional APR, sometimes 0%, for a set number of months. It is worth it when the fee to move the balance is smaller than the interest you avoid, and when you can keep up a payment that does real work during the promo period.

The balance transfer calculator formula

Every input here comes from your own offer's terms. There is no typical fee to assume, so enter the one in front of you.

transfer fee = amount transferred × fee rate balance on the new card = amount transferred + transfer fee balance when a 0% promo ends = balance on the new card − (monthly payment × promo months)

The fee is typically added to the transferred balance rather than paid separately, but check the terms. Then compare the new card's balance at the end of the promo with what the old card would owe after the same number of months at the same payment. If the new card's post-promo APR is the same as your current APR, the comparison comes down to one rule:

A balance transfer saves money when the fee in dollars is less than the interest your current card would charge over the promo months, at the payment you will actually make.

A worked balance transfer example

Staying put. $5,000 at 22.99% APR, paying $250 a month. The calculator gives 26 months and $1,365.57 of interest. In the first 12 months alone that card charges $941.51 of interest, so after 12 payments the balance is still $2,941.51 ($5,000 − $3,000 paid + $941.51 interest).

Transferring. Suppose, purely as an example, an offer of 0% for 12 months with a fee of F dollars, where F is $5,000 times the fee rate in your offer. Each percentage point of fee on $5,000 is $50. You keep paying $250 a month.

• New card balance on day one: $5,000 + F
• After 12 payments at 0%: $5,000 + F − $3,000 = $2,000 + F
• Assume the leftover then reverts to 22.99%, the same APR as the old card

After month 12, both paths have the same APR and the same $250 payment, so whichever balance is smaller is cheaper from there. The old card sits at $2,941.51 and the transfer card at $2,000 + F. The transfer wins whenever F is less than $941.51, which is exactly the interest the old card charges during those 12 months. With no fee at all, the transfer path clears in 21 months with $192.13 of interest, against 26 months and $1,365.57 on the old card.

If you can clear the whole transfer inside the promo, the arithmetic is simpler. The payment needed is (balance + F) ÷ promo months, and the only cost is F. From the payment table above, $5,000 at 22.99% takes $470.36 a month to clear in 12 months, with $644.29 of interest. Paying the same $470.36 for 12 months on a 0% card clears $5,644.32 ($470.36 × 12), so it covers $5,000 plus a fee of up to about $644. At that payment, the transfer is cheaper as long as the fee is below roughly $644.

Running a balance transfer through the payoff calculator

The calculator applies one APR for the whole payoff, so it cannot switch from a promo rate to a standard rate on its own. Run it in steps:

1. Promo phase. Enter the balance plus the fee as the balance, 0 as the APR, and your monthly payment. If the months it returns fit inside the promo period, the total cost of the transfer is the fee.
2. After the promo. If it does not fit, work out what is left when the promo ends: balance plus fee, minus payment × promo months. Enter that as the balance, with the post-promo APR and the same payment. Add the promo months to the months it returns, and add the fee to the interest.
3. The old card. Enter your current balance, APR and the same payment, and compare the totals.

For example, $5,000 at 0% and $250 a month returns 20 months before any fee is added. That is longer than a 12-month promo, so step 2 applies.

What can make a balance transfer cost more

The rule above assumes the offer's terms hold and your habits do not change. It breaks down when:

• The post-promo APR is higher than your current APR. Whatever is left when the promo ends then costs more than it did. Plan to clear it inside the promo, or redo the comparison at the higher rate.
• The promo period is shorter than you assumed. Check in the terms exactly when the promotional rate starts and ends.
• You make new purchases on the new card. Purchases can carry the standard purchase APR. Under federal rules, the amount you pay above the minimum generally goes to the balance with the highest APR first, but the minimum itself can be applied to a lower-rate balance, so a mixed balance still costs interest. Confirm the current rule with the Consumer Financial Protection Bureau.
• You pay late. A late payment can bring a late fee and, depending on the terms and how late it is, the loss of the promotional rate.
• The old card fills up again. Moving $5,000 and then spending the old card back up doubles the debt.
• The new credit limit is below your balance. Only part of the debt moves, so run the numbers on the part that does.

A fixed-rate personal loan is the other common way to consolidate card debt, with a set term and payment instead of a promo that expires. To compare, enter the loan's balance, APR and payment in the Loan Payoff Calculator, add any upfront loan fee to the interest it returns, and set that against the card figures from this page.

Debt snowball vs avalanche for several cards

With more than one card, pay the minimum on every card and put all spare money toward one target card. When that card is gone, roll its payment into the next target. The two methods differ only in which card you target first:

• Avalanche: the highest APR first. This minimises the total interest you pay.
• Snowball: the smallest balance first. It can cost more interest, but it clears whole cards sooner, which helps some people keep going.

The payoff calculator handles one card at a time, so run each card with its own balance, APR and payment to see when each one clears and frees up its payment for the next. For the full comparison, with a worked example across three debts, read Debt snowball vs avalanche.

Debt-to-income ratio: how a debt ratio calculator works

Debt-to-income ratio (DTI) compares the debt payments you owe each month with your income before tax. Lenders use it to judge whether you can take on a new payment, most visibly for mortgages, and also for car loans and personal loans. The payoff calculator does not calculate DTI, but the formula is short:

DTI = total monthly debt payments ÷ gross monthly income × 100

Worked with illustrative figures, for someone with a gross monthly income of $6,000:

Monthly debt payment	Amount
Rent or mortgage payment	$1,500
Car loan	$400
Student loan	$200
Credit card minimum payments	$150
Total	$2,250

DTI = $2,250 ÷ $6,000 × 100 = 37.5%.

Some lenders also look at a housing-only ratio, often called the front-end ratio: $1,500 ÷ $6,000 × 100 = 25%. The all-debts figure is then called the back-end ratio.

Points that trip people up:

• Use gross income, not take-home pay. DTI is measured against income before tax and deductions.
• A card usually counts at its required monthly payment, not at the balance, and not at the larger amount you choose to pay. Ask the lender how it treats card debt.
• Paying a card to zero removes its payment. Clear the cards in the example and DTI falls to $2,100 ÷ $6,000 × 100 = 35%.
• Every lender sets its own thresholds. There is no universal pass mark. The ratio a lender accepts depends on the loan type, the program and the rest of your application, so ask the lender what it uses.
• DTI is not credit utilization. Utilization compares your card balances with your credit limits and has nothing to do with income.

If you are preparing for a mortgage application, the Mortgage Calculator gives the monthly housing payment to put in the top row.

How to pay off credit card debt faster

The single most effective move is to pay a fixed amount every month rather than the shrinking minimum. The payment stays constant while the balance falls, so more of each payment goes to principal over time and the payoff accelerates. Beyond that:

• Set the payment from a deadline. Pick 12, 24 or 36 months and read the payment off the table above, then confirm it in the calculator.
• Pick one target card. Pay the minimum everywhere else and put every spare dollar on the highest-APR card (avalanche) or the smallest balance (snowball).
• Stop adding new charges to the card you are paying down. Once it is paid in full, the grace period can come back.
• Pay earlier in the cycle. Interest runs on the average daily balance, so a payment credited sooner lowers it. In the worked cycle above, moving a $1,000 payment from day 21 to day 1 saved $12.60.
• Put windfalls straight on the balance. A one-off $1,000 on $5,000 at 22.99% turns the balance into $4,000. At $250 a month that clears in 20 months with $822.77 of interest, against 26 months and $1,365.57 without it: 6 months and $542.80 saved.
• Move the balance only if the numbers work. Use the fee rule above and run both phases through the calculator.
• Ask for help early. If you cannot keep up with the payments, call your issuer and ask what hardship options it has, and use the credit counseling number on your statement's minimum payment warning box.

Common credit card payoff mistakes

Treating the minimum as a plan. On the illustrative formula, $5,000 at 22.99% takes 232 months on the shrinking minimum and 57 months if you simply keep paying the first minimum.

Choosing a payment a few dollars above the monthly interest. $10,000 at 29.99% with $250 a month takes 325 months. An extra $50 a month brings it to 73.

Assuming 0% means free. The transfer fee is real money paid up front, and whatever is left when the promo ends goes back to a standard APR.

Clearing a card with a transfer, then spending on it again. The debt comes back on top of the transferred balance.

Comparing APRs without comparing payments. At $500 a month, $5,000 at 15% takes 11 months and $375 of interest, and at 29.99% it takes 12 months and $826. At $150 a month the same two APRs mean 44 months and $1,509 against 73 months and $5,878. The size of the payment decides how much the APR hurts.

Expecting the calculator to match a statement to the cent. It charges APR ÷ 12 on the monthly balance. Your issuer uses daily rates, the actual days in each cycle and the timing of your payments. Use the calculator for how long and how much, and your statement for this month's exact charge.

The bottom line

Credit card interest is your APR turned into a daily rate and charged on your average daily balance. The minimum payment shrinks as the balance does, which is why it can stretch a few thousand dollars over decades. Pick a fixed payment instead, ideally one set from a deadline, put windfalls on the balance and stop new charges. Take a balance transfer only when the fee is smaller than the interest you avoid during the promo. Run your own balance, APR and payment through the Credit Card Payoff Calculator, then raise the payment until the months and the interest are numbers you can live with.

Related calculators

• Loan Payoff Calculator: payoff time and interest on a personal loan, with extra payments
• Mortgage Calculator: the monthly housing payment that goes into a debt-to-income ratio
• Take-Home Pay Calculator: what lands in your account each month to budget debt payments from
• Savings Goal Calculator: build a cash buffer so the next surprise bill does not go on the card
• Compound Interest Calculator: the same maths working for you instead of against you