Credit Card Payoff Calculator
Calculate how long it will take to pay off your credit card debt
About This Calculator
The Credit Card Payoff Calculator helps you determine how long it will take to pay off your credit card debt and how much interest you will pay. This tool is essential for creating a debt repayment plan and understanding the true cost of credit card debt.
How It Works
- 1
Enter your current credit card balance.
- 2
Input your annual interest rate (APR).
- 3
Specify how much you can pay each month.
- 4
The calculator shows payoff time, total interest, and total payments.
Formula Explanation
Monthly Interest = Balance × (APR / 12)Interest is calculated monthly based on the current balance and annual percentage rate.
Principal Payment = Monthly Payment - Monthly InterestAfter paying interest, the remainder goes toward reducing the principal balance.
New Balance = Previous Balance - Principal PaymentThe balance decreases each month as principal is paid down.
Tips
Paying more than the minimum payment significantly reduces payoff time and interest.
Focus on paying off high-interest cards first (avalanche method).
Consider balance transfer cards with lower interest rates.
Avoid making new purchases while paying off debt.
Even small increases in monthly payments can save significant interest.
Common Uses
Debt Repayment Planning
Create a plan to pay off credit card debt efficiently.
Interest Cost Analysis
Understand how much interest you will pay over the life of the debt.
Payment Strategy
Determine the optimal monthly payment to minimize interest.
Goal Setting
Set realistic timelines for becoming debt-free.