Credit Card Payoff Calculator

Enter your balance and the purchase rate APR to see your payoff timeline. Adding extra payments shows the saving in months and total interest.

Months to payoff

524

≈ · European Central Bank rate, 2026-09-14

Total interest

$20,206

Total paid

$25,206

With extra

Current balanceiThe total amount currently owed on your credit card

Interest rate (APR)iAnnual Percentage Rate - the yearly cost of carrying an unpaid balance

Minimum paymentiChoose how your minimum payment is calculated: a percentage of your balance, or a fixed dollar amount

% of balanceFixed amount

Min % of balanceiYour card charges this percentage of your current balance as the minimum payment each month

Minimum flooriEven if the % calculation is lower, you must pay at least this amount each month

See how paying more reduces total interest

Each month, interest accrues on the outstanding balance, then your payment reduces the principal:

monthly interest = balance × (APR ÷ 12)

minimum payment (% rule) = max(balance × percent, floor amount)
minimum payment (fixed)  = fixed amount

payment applied: interest first, remainder to principal

balance next month = balance − (payment − monthly interest)

With an extra monthly payment: The extra amount goes entirely to principal every month, shortening the payoff timeline and reducing total interest proportionally.

All arithmetic uses integer cent values to avoid floating-point drift over many months.

How the payoff timeline is calculated

Each month, interest is added to the outstanding balance at the monthly rate (APR ÷ 12), then the minimum payment is deducted. If the minimum is a percentage of the balance, it shrinks as the balance falls - meaning less goes to principal over time. This is why minimum-only payoff timelines are so long: the payment reduces almost in step with the balance, keeping you in debt for years. Adding even a small fixed extra payment breaks this cycle.

What this doesn't include

This models only the existing balance at the stated rate. It does not account for new purchases added to the card, annual or monthly fees, promotional 0% periods expiring, or balance transfer fees. If you continue using the card while paying it down, the actual payoff will be longer. For the most useful result, treat this as the payoff plan for a frozen balance - no new spending on that card.

Why your card statement shows a different figure

Card statements in many countries now show a payoff estimate, but these often assume the minimum percentage stays constant rather than shrinking as the balance falls. Your statement may also include the current month's interest before it has been applied, or use a daily compounding method rather than monthly. The calculator above uses the most common monthly compounding model.

Frequently asked questions

Why do minimum payments take so long to pay off a balance?

Minimum payments are typically set at 1–2% of the outstanding balance, which barely covers the monthly interest charge. The principal falls very slowly, so interest continues to compound on nearly the full balance. Even a small fixed extra payment each month dramatically accelerates payoff.

How much does paying an extra £50 or $50 a month help?

On a typical balance of £3,000 or $5,000 at 20–22% APR, an extra £50/$50 per month can cut several years off the payoff period and save hundreds in total interest. Use the calculator above to see the exact impact for your balance and rate.

What is EIR and why does Singapore quote it?

Singapore and some other markets quote credit card rates as a flat monthly rate (e.g. 1.5% per month). The Effective Interest Rate (EIR) converts this to a true annualised basis - the equivalent APR - which is typically around 26% for a 1.5% monthly flat rate. EIR allows accurate comparison across loan products.

Should I use the avalanche or snowball method for multiple credit cards?

The avalanche method (pay the highest-rate card first) minimises total interest paid and is mathematically optimal. The snowball method (pay the lowest balance first) is slower but gives earlier wins, which some people find motivating. Use the debt strategy calculator to compare both for your specific debts.

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Written and maintained by the Reckoner team

The repayment engines behind this site are tested against worked examples published by FRED, the Bank of Canada, the Bank of England and the Reserve Bank of Australia. Found an error? Contact us

Last reviewed September 15, 2026