How long a fixed payment takes
Pay the same amount every month and see the payoff time and the interest.
- Starting balance$5,000.00
- Number of payments34
- Total interest$1,749.88
- Total paid$6,749.88
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.
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 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 |
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 |
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.
Sources and review
- Standard amortization formula with monthly compounding