Financial calculator

Credit Card Payoff Calculator

Debt balanceMonthly paymentAnnual interest rate (%) (0 for interest-free)

Months to pay off: -

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Calculation explained

How this result was calculated

The formula, your substituted values, and the evaluated result are shown below.

Results are estimates. Rates should be entered as annual percentages unless the field states otherwise.

Visual analysis

Estimated debt payoff path

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About this calculator

Calculate credit card payoff calculator using clearly labelled financial inputs and an instant result.

Calculator guide

How the credit card payoff calculator works

Enter your balance, your fixed monthly payment and the card's interest rate. The calculator works out how many months it takes to clear the debt, with interest added each month:

Months = −ln(1 − r × balance ÷ payment) ÷ ln(1 + r)

where r is the monthly rate (annual rate ÷ 12 ÷ 100). Enter 0% for an interest-free period or a 0% balance transfer, and the answer is simply balance ÷ payment.

If your payment is smaller than the monthly interest, the balance never falls, and the calculator shows ∞ (infinity).

Worked example: $4,000 balance, $200 a month

On a card charging 20% p.a.: about 24.5 months, paying roughly $906 in interest
On a 0% balance transfer: 4,000 ÷ 200 = 20 months, with no interest

That gap grows quickly as payments get smaller. At $100 a month on the 20% card, you'd be paying for about 5½ years and pay about $2,650 in interest.

Paying it off faster

Pay more than the minimum. Minimum payments are designed to keep you in debt for years.
Avalanche method: pay extra on the highest-rate card first. It saves the most interest.
Snowball method: pay off the smallest balance first for quick wins.
0% balance transfer: can help, but only if you clear the balance before the offer ends and stop adding to the card. Watch for transfer fees.

Common mistakes

Entering the wrong rate. Use the purchase or cash-advance rate that actually applies to the balance.
Continuing to spend on the card while paying it down.
Letting a 0% balance transfer roll over to a high revert rate.

How long will it take to pay off $5,000 on a credit card?

At $250 a month with no interest, 20 months. At 20% p.a., about 25 months, with around $1,130 in interest.

Why is my credit card balance not going down?

If your payment barely covers the monthly interest, very little goes to the balance. Increase the payment, or move the debt to a lower rate.

Is a balance transfer worth it?

It can save a lot of interest if you pay the balance off within the 0% period and avoid new purchases on the card.

Written by Sam Alex, civil engineer. About the author