Credit Card Payoff Calculator
Credit card debt is the most expensive borrowing most households ever carry. At a typical 24 percent APR, paying only the minimum stretches a balance out for years and multiplies it in interest. This calculator shows the real timeline.
Card balance and payment
Use the current statement balance for one card at a time.
Interest alone costs $100.00 a month at this balance.
Anything at or below $100.00 never reduces the balance.
The cost of only paying the minimum
A typical card requires a minimum of about 2% of the balance, which here is $150.00 and falls as the balance drops. Paying the minimum on this balance would take 16 years 9 months and cost $8,442 in interest.
Your payment plan
Minimum payments only
A balance transfer to a 0% card pauses interest but usually charges 3% to 5% upfront. On this balance that is roughly $150, often far less than the interest this plan pays, provided the card is not used for new spending.
Payoff schedule
| Month | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $150.00 | $100.00 | $50.00 | $4,950 |
| 2 | $150.00 | $99.00 | $51.00 | $4,899 |
| 3 | $150.00 | $97.98 | $52.02 | $4,847 |
| 4 | $150.00 | $96.94 | $53.06 | $4,794 |
| 5 | $150.00 | $95.88 | $54.12 | $4,740 |
| 6 | $150.00 | $94.80 | $55.20 | $4,685 |
| 7 | $150.00 | $93.69 | $56.31 | $4,628 |
| 8 | $150.00 | $92.57 | $57.43 | $4,571 |
| 9 | $150.00 | $91.42 | $58.58 | $4,512 |
| 10 | $150.00 | $90.25 | $59.75 | $4,453 |
| 11 | $150.00 | $89.05 | $60.95 | $4,392 |
| 12 | $150.00 | $87.83 | $62.17 | $4,329 |
Notice how much of the first payment is interest: of $150.00, the issuer keeps $100.00 and only $50.00 reduces the balance. That ratio improves slowly, which is why raising the payment matters more than anything else.
Why minimum payments are a trap
Issuers typically calculate the minimum as about 1 percent of the balance plus that month's interest, so the required amount shrinks as the balance falls. On a $5,000 balance at 24 percent APR that is a first payment of $150, and it still takes about 17 years and $8,442 in interest to clear the card.
Pick a strategy and commit
The avalanche method targets the highest interest rate first and minimizes total interest. The snowball method targets the smallest balance first and produces quicker wins, which helps some people stay motivated.
The mathematically better option is avalanche. The behaviorally better option is whichever one you actually finish.
Lowering the rate is half the battle
A balance transfer to a 0 percent card can pause interest for 12 to 21 months, and a personal loan can lock in a fixed lower rate. Either one turns an open-ended problem into a deadline, but only if you stop adding new charges.
Frequently asked questions
What is a good credit card APR?
Under 15 percent is good, 15 to 20 percent is average for a rewards card, and above 25 percent is typical for store cards and cards aimed at rebuilding credit. Credit unions often offer lower rates than national issuers.
Does paying off a card hurt my credit score?
Closing the account can, so leave it open and unused. Lowering your utilization ratio (the share of your limit you are using) usually improves your score within one or two billing cycles.
Should I use my emergency fund to pay off the card?
Keep a small buffer of about one month of expenses, then put the rest toward the card. A 24 percent guaranteed return beats almost any savings account, but going to zero savings leaves you re-borrowing at the next surprise expense.
What is a balance transfer fee?
Typically 3 to 5 percent of the transferred amount, charged once. On a $5,000 transfer at 3 percent that is $150, which is usually far less than the interest you would avoid.
This calculator is an educational tool and does not constitute financial, tax or legal advice. Results are estimates based on the inputs and assumptions described above. Verify important figures with a qualified professional or the relevant government agency before acting on them.