Credit Card Payoff Calculator
A credit card payoff calculator simulates paying down a balance month by month at a chosen fixed payment amount, showing how many months it takes and the total interest paid — different from a loan calculator, where the payment is computed to fit a fixed term. Simulating month by month, rather than solving a formula directly, is necessary here because you are fixing the payment amount and asking how long payoff takes — the reverse of a loan calculator, which fixes the term and solves for the payment — and if the fixed payment does not even cover a month’s interest, the balance will never reach zero.
Educational estimate only. Results are not medical, legal, or financial advice. Confirm important decisions with a qualified professional.
How it works
- Enter your current balance and APR.
- Enter the fixed amount you plan to pay each month.
- Read how many months it takes to reach zero and the total interest paid.
Formula Month-by-month simulation: interest = balance × (APR/12); balance += interest − payment
Frequently asked questions
Why not just use a loan payment formula?
A loan payment is computed backward from a fixed term. Credit card payoff works the other way — you pick the payment, and the payoff time is what results — which needs a month-by-month simulation.
What if my payment doesn’t even cover the interest?
The balance would never shrink and grows indefinitely — this tool flags that case explicitly rather than showing a misleading result.
Does this account for new purchases?
No — it assumes no new charges are added while paying down the existing balance.
Why does paying just the minimum take so long?
Credit card APRs are typically high (15-25%+), so a low fixed payment goes mostly to interest early on, stretching payoff out for years — try increasing the payment to see the effect.
Is this financial advice?
No. It is an educational estimate — actual terms, fees, and rate changes vary by issuer.