Credit Card Payoff Calculator
See how long your card takes to clear on minimum payments versus a fixed amount, and what the difference costs you.
Paying only the minimum
| Month | Minimum due | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $197.71 | $132.71 | $65.00 | $6,435.00 |
| 2 | $195.73 | $131.38 | $64.35 | $6,370.65 |
| 3 | $193.77 | $130.07 | $63.71 | $6,306.94 |
| 4 | $191.84 | $128.77 | $63.07 | $6,243.87 |
| 5 | $189.92 | $127.48 | $62.44 | $6,181.44 |
| 6 | $188.02 | $126.20 | $61.81 | $6,119.62 |
| 7 | $186.14 | $124.94 | $61.20 | $6,058.42 |
| 8 | $184.28 | $123.69 | $60.58 | $5,997.84 |
| 9 | $182.43 | $122.46 | $59.98 | $5,937.86 |
| 10 | $180.61 | $121.23 | $59.38 | $5,878.48 |
| 11 | $178.80 | $120.02 | $58.78 | $5,819.70 |
| 12 | $177.02 | $118.82 | $58.20 | $5,761.50 |
The minimum payment falls as the balance falls, which is why this schedule stretches out so far. The payment shrinking is the trap.
Paying 300 every month
| Month | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $300.00 | $132.71 | $167.29 | $6,332.71 |
| 2 | $300.00 | $129.29 | $170.71 | $6,162.00 |
| 3 | $300.00 | $125.81 | $174.19 | $5,987.81 |
| 4 | $300.00 | $122.25 | $177.75 | $5,810.06 |
| 5 | $300.00 | $118.62 | $181.38 | $5,628.68 |
| 6 | $300.00 | $114.92 | $185.08 | $5,443.60 |
| 7 | $300.00 | $111.14 | $188.86 | $5,254.74 |
| 8 | $300.00 | $107.28 | $192.72 | $5,062.03 |
| 9 | $300.00 | $103.35 | $196.65 | $4,865.37 |
| 10 | $300.00 | $99.33 | $200.67 | $4,664.71 |
| 11 | $300.00 | $95.24 | $204.76 | $4,459.95 |
| 12 | $300.00 | $91.06 | $208.94 | $4,251.00 |
How this is calculated
Two schedules: one paying a fixed amount each month, one paying the minimum, which is recalculated as a percentage of the falling balance each month.
Credit card debt behaves differently from a loan, and the difference is what traps people.
A mortgage or car loan has a fixed payment and a fixed end date. A credit card minimum is recalculated every month from your current balance — most US issuers charge roughly 1% of the balance plus that month's interest and fees, subject to a floor of around $25. Because the balance shrinks each month, the minimum shrinks with it. You are always paying a small slice of a falling number, so the debt tapers towards zero over an extraordinarily long period rather than clearing on a schedule.
That structure is why a $6,500 balance at 24.5% APR can take well over a decade to clear on minimums alone, and cost more in interest than the original debt. Almost the entire early payment is interest: at 24.5% the monthly rate is just over 2%, so on $6,500 the first month's interest alone is around $133, and a minimum of roughly $198 leaves only about $65 reducing what you owe.
Paying a fixed amount changes the mathematics completely. Because the payment does not shrink as the balance does, the principal portion grows every month and the payoff accelerates. The two schedules on this page show the same debt under both approaches, and the gap between them is usually startling — often a decade and thousands of dollars for a difference of a hundred or two a month.
One threshold is worth knowing. If a fixed payment does not exceed the first month's interest, the balance grows rather than shrinks and the debt never clears at all. This calculator will tell you when that is the case. Some issuers use a flat percentage of the balance instead of percentage-plus-interest, and on a high-APR card that structure can genuinely never amortise.
The practical rule that falls out of all this: choose a fixed monthly amount you can sustain and keep paying it as the minimum drops. The minimum falling is not good news — it is the debt lengthening.
Worked examples
The minimum payment trap
$6,500 at 24.5% APR, paying only the minimum of 1% of the balance plus interest.
The minimum starts near $198 and falls every month. The schedule stretches past twenty years and the total interest exceeds the original balance — all while every payment is made on time.
Load this scenario into the calculatorA fixed $300 a month
The same $6,500 at 24.5%, but paying a flat $300 regardless of the minimum.
Just over two years to clear, and the interest bill drops by an enormous margin. Freezing the payment rather than letting it shrink is the entire difference.
Load this scenario into the calculatorA 0% balance transfer
The same balance moved to a 0% promotional card, paying $300 a month.
With no interest, every dollar reduces the balance and the debt clears in under 22 months. Compare that against the transfer fee — usually 3–5% — to see whether the switch is worth it.
Load this scenario into the calculatorWhat this assumes
- No new purchases are made on the card. Adding spending while paying it down changes the outcome substantially.
- The APR is fixed. Promotional rates that expire, and penalty APRs triggered by a late payment, are not modelled.
- Interest is compounded monthly on the full balance, with no grace period, which is how a carried balance is normally treated.
- The minimum payment is modelled as a percentage of the balance plus that month's interest, subject to a floor — the most common US structure. Some issuers use a flat percentage of the balance instead, which pays down more slowly and on a high-APR card may never clear.
- Annual fees, late fees, and cash advance charges are excluded.
Common questions
- Why does paying the minimum take so long?
- Because the minimum is recalculated from your balance every month, so it falls as the balance falls. It is typically about 1% of the balance plus that month's interest — meaning most of the payment covers interest and only a sliver reduces the debt. The payment shrinking each month is what stretches the schedule out for years.
- How much do I need to pay to make any progress?
- More than one month's interest, which is your APR divided by twelve, times your balance. At 24.5% on $6,500 that is about $133 a month just to stand still. Anything at or below that and the balance grows rather than shrinks.
- Should I pay off the highest-rate card or the smallest balance first?
- Highest rate first — the avalanche method — always costs less in total interest. Smallest balance first — the snowball method — clears individual cards sooner, which some people find easier to sustain. The mathematically optimal choice is the avalanche; the one you actually finish is better than the one you abandon.
- Is a balance transfer worth it?
- Often yes, if you will clear most of the balance during the promotional period. Weigh the transfer fee, typically 3–5% of the balance, against the interest you would otherwise pay. The risk is that the rate reverts before you finish and you end up back where you started, minus the fee.
- Does paying off a card improve my credit score?
- Usually yes, and often quickly. Credit utilisation — your balance relative to your limit — is a major scoring factor, so reducing a high balance can move a score within a billing cycle or two. Keeping the account open after clearing it generally helps more than closing it.
Related calculators
- Auto Loan Early Payoff Calculator — See what paying extra on your car loan saves in interest, and how much sooner you own the car outright.
- Extra Mortgage Payment Calculator — See exactly how much interest an extra monthly payment saves, and how many years it takes off your mortgage.
- Compound Interest Calculator — Project savings or investments year by year, separating what you contribute from what compounding adds.