Credit card payoff calculator

Why card debt lasts so long

Credit cards charge high interest, often over 20% APR, on whatever balance you carry. If you only pay a little more than the interest each month, most of your payment never touches the balance. The CFPB requires statements to show how long minimum payments would take for this reason.

Worked example

A $5,000 balance at 22.99% APR costs about $96 in interest in the first month. Paying $200 a month, it takes 35 months to clear and costs $1,871 in interest. To be debt-free in 24 months instead, you need to pay about $262 a month.

Strategies

• Pay more than the minimum: even an extra $50 a month shortens payoff by months.
• Avalanche: put extra money on the highest-APR card first; it saves the most interest.
• Snowball: clear the smallest balance first for quicker wins.
• Balance transfer: a 0% promotional rate can help if you can repay before it ends; watch the transfer fee.

In payment mode the page simulates each month: it adds a month of interest (APR ÷ 12 times the balance, rounded to the cent) and subtracts your payment, counting months until the balance reaches zero and summing the interest. In months mode it solves for the fixed payment with the loan annuity formula. It assumes you make no new purchases on the card and the APR stays the same. Card issuers use daily balances, so real interest may differ by a few dollars.