US Credit card payoff calculator

How credit card payoff works

Credit card interest compounds on the balance you carry. Each month, interest is added at your monthly rate (the APR divided by 12), then your payment is subtracted. Because the interest is charged on the remaining balance, paying more than the minimum attacks the principal directly and dramatically shortens the payoff time.

Monthly interest = balance × (APR ÷ 12)
New balance = balance + interest − payment

The minimum-payment trap

Card minimums are typically set at around 1% of the balance plus that month's interest (with a small floor like £/$25). Because the minimum falls as the balance falls, paying only the minimum stretches repayment over many years and can mean paying more in interest than you originally borrowed. Paying a fixed amount instead — even slightly above the first minimum — clears the debt far faster, because the whole of each extra pound or dollar goes against principal.

Worked example

Balance 5,000 at 21.9% APR.

• Minimum only (1% + interest): roughly 20+ years to clear, with interest often exceeding the original balance.
• Fixed 200/month: cleared in about 2.5 years, paying around 1,400 in interest.
• The difference is thousands of pounds/dollars and well over a decade — for the same debt, just a different payment strategy.

Two ways to plan your payoff

• Set a monthly payment — see how long it takes and the total interest, plus how much you save versus the minimum.
• Pay off by a target date — enter the number of months and the calculator finds the fixed payment needed: payment = balance × r ÷ (1 − (1 + r)−n).

Strategies to clear card debt faster

• Pay a fixed amount, not the minimum. Lock in a payment and keep it level even as the balance drops.
• Stop new spending on the card. Interest charged on fresh purchases undoes your progress.
• Target the highest APR first (the avalanche method) to minimise total interest across multiple cards.
• Consider a 0% balance transfer. Moving the balance to a promotional 0% card lets every payment hit principal — but watch the transfer fee and the date the promo rate ends.

What this calculator doesn't cover

• New purchases or cash advances added to the card
• Promotional 0% periods and balance-transfer fees
• Annual fees, late fees, and penalty APRs
• Variable APRs (treated as fixed at the rate you enter)
• The credit-score impact of utilisation and payoff

Use it to compare strategies and set a realistic payment — then automate that payment so it happens every month without fail.