Credit card payoff calculator

Each month, interest is added at APR / 12 on the balance you carry, and then your payment is subtracted. The calculator repeats this until the balance reaches zero and adds up the interest along the way.

To be debt-free in a set number of months, the payment is the same fixed-payment formula a lender uses for an installment loan: payment = B × r / (1 − (1 + r)^−n), where B is the balance, r the monthly rate and n the number of months.

If your payment is less than the monthly interest, the balance never goes down, and the calculator tells you the minimum you'd need to pay just to start making progress.

A $5,000 balance at 22% APR, paying $200 a month, with no new charges:

• Paid off in 34 months (2 years and 10 months).
• Total interest: $1,749.88.

Pay $300 a month instead and you're done in 21 months with $1,021.60 of interest. To be debt-free in exactly 24 months, you would need to pay $259.39 a month.

Many card issuers set the minimum payment at the month's interest plus 1% of the balance, with a floor of around $25. Paying only that minimum on the same $5,000 at 22%:

• It takes about 230 months, more than 19 years.
• Total interest: about $8,100, more than one and a half times the original balance.

Because the minimum shrinks as the balance shrinks, you pay less and less principal each month. Card statements are required under the CARD Act to show how long payoff takes at the minimum, and what to pay to clear the balance in three years. Your issuer's exact formula is printed on your statement and may differ from the common one used here.

• Pay more than the minimum, every month. Even $50 extra makes a large difference over the life of the debt.
• Stop adding to the balance. The calculator assumes no new purchases; new charges push the payoff date back.
• Avalanche or snowball. With several cards, paying extra on the highest APR first (avalanche) saves the most interest. Paying off the smallest balance first (snowball) gives quicker wins that help some people stay on track. Either way, pay at least the minimum on every card.
• Balance transfer. A 0% intro APR can help if you can pay off the balance before the promotion ends. Watch for the transfer fee, often 3% to 5% of the amount, and the rate after the intro period.
• Call your issuer. Ask about a lower rate or a hardship program, especially if you've paid on time.
• Nonprofit credit counseling. A reputable counseling agency can review your budget and may offer a debt management plan.

Card issuers usually charge interest daily, using a daily periodic rate (APR / 365, or 360 for some) on your average daily balance, and add it to the balance monthly. That makes actual interest a little higher than APR / 12 on the statement balance, typically a few dollars a month on a balance of a few thousand. Interest also depends on when in the cycle you pay: paying earlier in the month lowers the average daily balance.

The calculator also ignores annual fees, late fees and penalty APRs, and assumes your APR stays the same. Variable-rate cards change with the prime rate, so check your statement.

The chart shows your balance falling month by month, and the full schedule lists the interest and remaining balance for every month. You can download it as a CSV file or print it, free. Your inputs are stored in the link, so the Share button sends the exact plan, which is handy if you're working out a budget with a partner.

This is an estimate, not financial advice.