How It Works
This calculator simulates your balance month by month: each month, interest accrues on the remaining balance at your card's rate, and then your payment is applied — first covering that month's interest, with the rest reducing the balance.
If your monthly payment doesn't exceed the interest charged that month, the balance would never go down, so the calculator will show a message asking you to increase the payment in that case.
Formula
- balance — Remaining card balance
- APR — Annual percentage rate on the card
- payment — Fixed monthly payment
Example
Example inputs: Balance $6,000, 22% APR, $250/month payment.
Result: Time to pay off: 2 years, 8 months (32 payments). Total interest paid: $1,979.05. Total paid: $7,979.05.
Frequently Asked Questions
What if my payment is too low?
If your monthly payment doesn't cover that month's interest, the balance would grow instead of shrink, so this calculator will tell you the payment is too low rather than show a misleading payoff time.
Does this include new purchases I might make?
No — it assumes the balance only goes down, with no new charges added. Continuing to use the card while paying it off will extend the actual payoff time.
Would paying more than the minimum help?
Yes. Paying more than the minimum required amount reduces the principal faster, which lowers both the payoff time and the total interest paid — try entering a higher monthly payment to compare.
This calculator provides estimates for informational purposes only and should not be considered financial, tax, or legal advice.