# Credit card payoff calculator

> A credit card payoff date depends on the balance, the APR, and what you pay each month. A $5,000 balance at an example 22% APR with a fixed $200 payment is gone in 2 years and 10 months, with $1,749.88 in interest. Paying only a minimum of 1% of the balance plus interest, with a $25 floor, stretches the same debt to 19 years and 2 months.

Source: https://www.calterix.com/en-us/simulator/credit-card-payoff/ · Updated 11/06/2026 · en-US

## How credit card interest works

Card interest builds every month on what you still owe. The calculator takes your APR, divides by 12 for a monthly rate, charges that on the balance, then applies your payment. The remainder is your new balance. Real issuers usually compute interest daily, so statement numbers can differ by a few dollars.

```
Monthly interest = balance × APR ÷ 12
New balance = old balance + interest − payment
Goal payment = balance × r ÷ (1 − (1 + r)^−months), with r = APR ÷ 12
```
Example: $5,000 at 22%. First month interest is about $91.67, so a $200 payment cuts the balance by $108.33.

A payment smaller than the monthly interest never reduces the balance. If you are comparing a new loan to pay off the card, the [personal loan calculator](https://www.calterix.com/en-us/simulator/loan/) shows the payment and total cost.

## Payoff time by monthly payment

| Monthly payment | Months to pay off | Total interest |
| --- | --- | --- |
| $125 | 73 | $4,094.54 |
| $150 | 52 | $2,798.05 |
| $200 | 34 | $1,749.88 |
| $300 | 21 | $1,021.60 |
| $500 | 12 | $574.44 |

$5,000 balance at an example 22% APR, no new purchases.

Going from $125 to $200 a month saves 39 months and $2,344.66 in interest. The first extra dollars have the biggest effect.

## The cost of minimum payments

Minimum payments keep the account in good standing, but they are built to be small. With a rule of 1% of the balance plus interest and a $25 floor, a $5,000 balance at 22% takes 19 years and 2 months to clear and costs $8,099.77 in interest, more than the original balance.

| Plan | Time | Interest |
| --- | --- | --- |
| Minimum only (1% plus interest, $25 floor) | 19 years and 2 months | $8,099.77 |
| Fixed $200 | 2 years and 10 months | $1,749.88 |

$5,000 at an example 22% APR.

> Minimum rules differ by issuer and change as the balance changes. Look for the rule in your cardholder agreement or statement and enter it in the Minimum only tab.

## Ways to pay off faster

- Pick a fixed payment above the minimum and keep it even as the minimum falls.
- Pay a little extra each month. Try the Payoff goal tab to see the payment that finishes by a date.
- Stop adding new purchases to the card you are paying down.
- If you have several cards, a common plan is to pay the highest APR first while paying the minimum on the others.
- A balance transfer or a consolidation loan can lower the rate, but fees and promotional rules vary. Add them up before you decide.

## Frequently asked questions

### How long will it take to pay off my credit card?

Enter the balance, APR, and monthly payment on the Fixed payment tab. A $5,000 balance at 22% with $200 a month takes 34 months.

### How much should I pay each month to be done in 2 years?

Use the Payoff goal tab. $5,000 at 22% over 24 months takes $259.39 a month and costs $1,225.38 in interest.

### What happens if I only pay the minimum?

The payoff takes far longer and costs far more. With a minimum of 1% of the balance plus interest and a $25 floor, $5,000 at 22% takes 19 years and 2 months and costs $8,099.77 in interest.

### How is credit card interest calculated?

Issuers usually apply a daily rate (APR ÷ 365) to your balance. The calculator uses a monthly rate (APR ÷ 12), which is close and easier to follow. Your statement has the exact charge.

### Why is my balance not going down?

Your payment may be about the same as the monthly interest. At 22% on $5,000, interest alone is about $91.67 a month, so a payment near that amount barely moves the balance.

### Does this calculator include new purchases or fees?

No. It assumes a fixed APR and no new purchases, late fees, or promotional periods. Treat the result as a plan for the balance you have today.