Credit Card Payoff Calculator
Calculate how long it will take to pay off your credit card debt and see how much interest you'll pay. Compare minimum payments vs. extra payments to see the savings.
Credit Card Details
Your credit card APR is usually on your statement
Typically 2-3% of your balance
Extra Payment
Amount above minimum payment to pay off faster
Time to Payoff
2.5 years
30 months
Minimum Payments Only
With Extra Payments
Understanding Credit Card Payments
Credit cards typically charge interest on your outstanding balance if you don't pay the full amount by the due date. The Annual Percentage Rate (APR) is the yearly interest rate, but credit card companies calculate interest daily and charge it monthly.
Minimum Payments
Credit card issuers calculate minimum payments as either a percentage of your balance (typically 2-3%) or a flat fee, whichever is greater. While making minimum payments keeps your account in good standing, it can take years to pay off your balance and you'll pay significantly more in interest.
Benefits of Extra Payments
Making extra payments above the minimum can dramatically reduce both your payoff time and total interest paid. Even an additional $50 or $100 per month can save you thousands of dollars and years of payments. The calculator shows the comparison to help you understand the impact of extra payments.
Tips to Pay Off Credit Card Debt Faster
- Pay more than the minimum whenever possible
- Consider a balance transfer to a lower-rate card
- Stop using the card while paying it off
- Set up automatic payments to avoid late fees
- Use windfalls (tax refunds, bonuses) to make lump-sum payments
Important Disclaimer
This calculator provides estimates for educational and informational purposes only. Results should not be considered as financial advice. Actual payoff times and interest charges will vary based on payment consistency, rate changes, additional charges, and fees.
If you're struggling with credit card debt, consider consulting with a non-profit credit counseling agency for personalized advice and debt management options.