Finance
Credit Card Payoff Calculator
See how long a card balance takes to clear, what the interest costs, and what paying extra saves.
Result
Example with the values filled in above
Debt-free in
2 yr 10 mo
$200.00 a month clears $5,000.00 at 22% APR
Total interest: $1,749.88 · Total paid: $6,749.88
| Starting balance | $5,000.00 | What you owe today |
|---|---|---|
| Monthly payment | $200.00 | Fixed each month |
| First month interest | $91.67 | 45.83% of the first payment |
| Months to clear | 2 yr 10 mo | At this payment |
| Total interest | $1,749.88 | 35% of the balance |
| Total repaid | $6,749.88 | Balance plus interest |
Change any value and press Calculate for your own result.
Calculating…
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Paying off $5,000 at 22.15% APR
- $150/mo
- $250/mo
- $400/mo
Show the numbers
| Month | $150/mo | $250/mo | $400/mo |
|---|---|---|---|
| 0 | $5,000 | $5,000 | $5,000 |
| 3 | $4,824 | $4,518 | $4,060 |
| 6 | $4,637 | $4,009 | $3,066 |
| 9 | $4,441 | $3,471 | $2,017 |
| 12 | $4,233 | $2,903 | $909 |
| 15 | $4,013 | $2,303 | $0 |
| 18 | $3,781 | $1,669 | — |
| 21 | $3,536 | $999 | — |
| 24 | $3,277 | $291 | — |
| 27 | $3,004 | $0 | — |
| 30 | $2,715 | — | — |
| 33 | $2,409 | — | — |
| 36 | $2,087 | — | — |
| 39 | $1,746 | — | — |
| 42 | $1,386 | — | — |
| 45 | $1,006 | — | — |
| 48 | $605 | — | — |
| 51 | $180 | — | — |
| 54 | $0 | — | — |
| 57 | — | — | — |
| 60 | — | — | — |
How credit card payoff is calculated
A credit card has no fixed term. You choose the payment, and that choice decides how long the balance lasts. Each month interest is charged on what is left, your payment covers that interest first, and only the remainder reduces the balance.
monthly interest = balance × APR ÷ 12 · principal paid = payment − interest
The number of months to clear a fixed payment comes from:
n = −log(1 − (r × balance) ÷ payment) ÷ log(1 + r)
where r is the monthly rate. The formula breaks when the payment is smaller than the interest — and that is not a maths error, it is the real answer. Below that threshold the balance grows forever.
What a card actually charges
Two different "average credit card APR" figures circulate, and the gap between them matters. The Federal Reserve publishes both in its G.19 release for May 2026:
| Measure | Rate | What it covers |
|---|---|---|
| All accounts | 20.94% | Every card plan, including the ones cleared in full every month |
| Accounts assessed interest | 22.15% | Only the accounts actually carrying a balance |
The second figure is the one that applies to you if you are reading this page. Source: Federal Reserve Board G.19 Consumer Credit release, via FRED, checked 17 September 2026. Your own card's APR is on your statement and is the number to put in the calculator — averages hide a spread that runs from promotional 0% to well over 30% on store and subprime cards.
The minimum payment trap
Minimum payments are usually set at 1–3% of the balance, calculated to keep you paying for as long as possible while staying legal. On $5,000 at the 22.15% average above:
| Monthly payment | Time to clear | Total interest |
|---|---|---|
| $92 or less | Never — interest alone is $92.29 | Balance grows |
| $100 | 11 yr 9 mo | $9,012 |
| $150 | 4 yr 5 mo | $2,834 |
| $200 | 2 yr 10 mo | $1,768 |
| $300 | 1 yr 9 mo | $1,031 |
| $500 | 1 yr | $579 |
Look at the first two rows. At $92 a month the balance never moves. At $100 — 8 dollars more — it clears, but takes 11 yr 9 mo and costs $9,012 in interest, more than the original debt. Another $50 on top cuts that to $2,834 and 4 yr 5 mo — the same debt, 69% less interest.
That is the whole argument for paying above the minimum in one table. Because interest compounds on whatever is left, every extra dollar buys back far more than a dollar of future cost, and the effect is largest at the low end.
Snowball or avalanche with several cards
| Method | Order | Best for |
|---|---|---|
| Avalanche | Highest APR first | Paying the least interest overall — mathematically optimal |
| Snowball | Smallest balance first | Clearing accounts quickly, which keeps motivation up |
Avalanche always wins on paper. Snowball often wins in practice, because a plan you finish beats a cheaper plan you abandon. Either way, keep paying the minimum on every other card while you attack one.
Weekly and biweekly payments
Paying half your monthly amount every two weeks results in 26 half-payments a year — the equivalent of 13 monthly payments instead of 12. On $5,000 at 22% that extra month knocks several months off the term at no change to your monthly budget.
It also reduces the average daily balance, which is what most issuers charge interest against, so you save slightly more than the extra payment alone would suggest. Check that your issuer applies payments on receipt rather than holding them until the statement date.
Statement date, due date, and grace period
These are three different dates and confusing them is what turns a manageable card into an expensive one:
- Closing date — the end of the billing cycle. The balance on this date is what appears on your statement and what is usually reported to credit bureaus.
- Due date — typically 21–25 days after the closing date. That gap is the grace period.
- Grace period — you pay no interest on new purchases if you clear the full statement balance by the due date. Carry any balance and the grace period disappears, so new purchases start accruing interest from the day you make them.
That last point catches people out repeatedly. Once you are carrying a balance, there is no interest-free window until you clear it entirely.
Should you consolidate?
A balance transfer or consolidation loan is worth it when the new rate plus fees costs less than staying put. Balance transfer cards typically charge a 3–5% transfer fee for a 0% window of 12–21 months — on $5,000 that is $150–250 up front against roughly $1,500 of interest avoided.
The catch is behavioural rather than mathematical: consolidation only works if the cleared card stays cleared. Compare the numbers with the loan payment calculator before committing.
The same compounding maths, running in your favour, is in the compound interest calculator — which is why clearing a 22% card usually beats investing the same money.
Credit Card Payoff Calculator — frequently asked questions
How long will it take to pay off my credit card?
It depends entirely on the payment. On $5,000 at 22% APR, $150 a month clears it in 4 years 4 months and costs $2,798 in interest, while $200 a month takes 2 years 10 months and costs $1,750.
Why does my balance never go down?
Because the payment is not covering the interest. At 22% APR a $5,000 balance accrues about $92 a month, so anything at or below that leaves the balance flat or growing.
Should I use the snowball or avalanche method?
Avalanche — highest APR first — always costs less in interest. Snowball clears the smallest balance first and often works better in practice, because a plan you actually finish beats a cheaper one you abandon.
What is the difference between the closing date and the due date?
The closing date ends the billing cycle and sets the statement balance. The due date is usually 21 to 25 days later. Paying the full statement balance by the due date means new purchases stay interest-free.
Do biweekly payments really help?
Yes. Half the monthly amount every two weeks gives 26 half-payments a year — 13 monthly payments instead of 12 — and lowers the average daily balance the interest is charged on.
Is a balance transfer worth the fee?
Usually, if you clear the balance inside the promotional window. A 3 to 5% fee on $5,000 is $150 to $250 against roughly $1,500 of interest avoided — but only if the old card stays cleared.