Credit Card Payoff Calculator
Your details
Advanced options
Result
Time to clear
- Total interest
- $2,403
- Total paid
- $8,403
- Paying the minimum only
- 12 years 4 months (148 months)
- Interest on the minimum
- $5,863
- Interest in month one
- $125
- Interest as a share of what you pay
- 28.60%
- Paying a fixed $250 clears the card in 2 years 10 months (34 months) for $2,403 of interest. Paying only the minimum would take 12 years 4 months (148 months) and cost $5,863 — $3,460 more, because the minimum shrinks as the balance does.
- Of the $250 you pay this month, $125 is interest and only $125 reduces the balance. That ratio improves every month.
- Adding $50 a month would clear it 7 months sooner and save $562 in interest.
The same balance at different payments
Every extra dollar a month comes off the end of the term, where the interest compounds longest.
| Monthly payment | Time to clear | Total interest | Interest saved |
|---|---|---|---|
| $250 (yours) | 2 years 10 months (34 months) | $2,403 | — |
| $300 (+$50) | 2 years 3 months (27 months) | $1,841 | $562 |
| $350 (+$100) | 1 year 10 months (22 months) | $1,500 | $903 |
| $450 (+$200) | 1 year 4 months (16 months) | $1,102 | $1,301 |
| $650 (+$400) | 11 months | $734 | $1,669 |
How long does it take to pay off a credit card?
A $6,000 credit card balance at 24.99% APR clears in 34 months paying a fixed $250 a month, costing $2,403 in interest. Paying only the 2% minimum takes 148 months — 12 years 4 months — because the minimum payment falls as the balance falls.
n = −log(1 − (B·r)/P) / log(1 + r) minimum = max(B × m + B × r, floor)- B
- Balance outstanding
- r
- Monthly rate — APR divided by 12
- P
- Fixed monthly payment
- m
- The issuer's minimum percentage, typically 1% to 3%
A fixed payment against a credit card is the standard loan-repayment problem rearranged for time rather than payment, and it has a closed-form answer. The minimum payment does not, because it is recalculated every month against a balance that is itself falling — so it has to be simulated month by month, which is what this page does. That difference is the entire reason minimum payments are so expensive. The first thing worth checking is whether the payment even covers the interest: at 24.99% APR a $6,000 balance accrues $124.95 in the first month, so anything at or below that leaves the balance growing no matter how long you pay. Beyond that threshold, progress is non-linear in a way that favours paying more. Every extra dollar comes off the end of the schedule, where the balance has been compounding longest, which is why an extra $50 a month on a typical balance saves several times its own total.
- Divide the APR by 12 to get the monthly interest rate.
- Multiply the balance by that rate for this month's interest.
- Check the payment exceeds that interest, or the balance grows.
- Subtract the remainder of the payment from the balance.
- Repeat until the balance reaches zero.
Worked example: A $6,000 balance at 24.99% APR, paying $250 a month
A $6,000 balance at 24.99% APR, paying $250 a month
The monthly rate is 24.99% ÷ 12 = 2.0825%, so the first month's interest on $6,000 is $124.95. Of the $250 payment, that leaves $125.05 to reduce the balance — barely half of it. Repeating until the balance clears takes 34 months, or 2 years 10 months, with $2,403 of total interest and $8,403 paid in all, so interest is 29% of everything handed over. The contrast with the minimum is the point. A 2% minimum plus interest starts at $244.95 — within $5 of the fixed $250 — but it declines every month as the balance falls, and on that path the card takes 148 months, or 12 years 4 months, and costs $5,863 in interest. That is 98% of the original balance, for a payment that began almost identically. Freezing the payment at that same $244.95 instead of letting it decline clears the card in 35 months for $2,481. Adding $50 to the fixed payment clears it in 27 months and saves $562.
What each credit card payoff input means
- Card balance
- What you currently owe on the card.
- APR
- The purchase APR from your statement. Cash advances and balance transfers usually carry a different, higher rate.
- How are you paying?
- A fixed payment clears the balance far faster, because the minimum shrinks as the balance does. Both are shown either way.
- Monthly payment
- What you intend to pay each month, if you are paying a fixed amount.
- Minimum payment
- Most issuers set the minimum at 1% to 3% of the balance plus interest, with a floor of around $25. Check your cardholder agreement.
What this credit card payoff does not account for
- A payment at or below the monthly interest never clears the balance. At 24.99% on $6,000 that threshold is about $125 a month.
- The minimum payment declines as the balance falls, which is what stretches repayment over decades. Freezing the payment at today's minimum amount is the single most effective change available.
- This assumes no further spending on the card. New purchases restart the problem, and most issuers apply payments to the lowest-rate balance first beyond the minimum.
- Cash advances and balance transfers usually carry a different APR from purchases, often with no grace period. A card with mixed balances needs each rate modelled separately.
- Paying the statement balance in full each month by the due date means no interest at all on purchases, which is how the grace period works.
- A promotional 0% APR period changes the arithmetic entirely while it lasts. Deferred-interest offers can retroactively charge interest from the purchase date if any balance remains at the end.
- Minimum payment formulas vary by issuer — commonly 1% to 3% of the balance plus interest and fees, with a floor of around $25. Check your cardholder agreement.
Frequently asked questions
How long will it take to pay off my credit card?
With a fixed payment, a $6,000 balance at 24.99% APR takes 34 months at $250 a month. Paying only the 2% minimum takes 148 months — 12 years 4 months — because the minimum shrinks as the balance does.
Why does paying the minimum take so long?
Because the minimum is a percentage of what you still owe, so it falls every month as the balance falls. Progress slows continuously, and most of each payment goes to interest for years.
What happens if I pay less than the interest?
The balance grows. At 24.99% APR a $6,000 balance accrues about $125 in the first month, so any payment at or below that leaves you owing more than before, indefinitely.
How much does an extra $50 a month save?
On a $6,000 balance at 24.99%, raising the payment from $250 to $300 clears the card seven months sooner and saves $562 in interest. Extra payments come off the most expensive end of the schedule.
Should I pay off the highest rate or the smallest balance first?
Highest rate first costs least in interest, which is the avalanche method. Smallest balance first clears accounts sooner and is easier to sustain, which is the snowball method. Avalanche wins on arithmetic.
Does paying off a credit card improve my credit score?
Lowering the balance reduces your credit utilisation, which is a significant scoring factor. Closing the account afterwards can reduce your available credit and work against you.
Sources and review
“Making only the minimum payment means it will take longer to pay off your balance and you will pay more in interest.”
What is a credit card minimum payment? — Consumer Financial Protection Bureau
Last reviewed .