Find out exactly when you’ll be debt-free. Use our credit card payoff calculator to see how monthly payments and interest rates affect your payoff timeline and total interest.
How to Use the Credit Card Payoff Calculator
Dealing with credit card debt can feel overwhelming, but having a clear plan is the first step toward financial freedom. This calculator helps you visualize your journey by showing you exactly how many months it will take to reach a $0 balance based on your current interest rate and monthly payment.
By increasing your monthly payment even by a small amount, you can significantly reduce the total interest paid and shave months (or even years) off your payoff timeline. This tool uses the standard declining balance method to track how your payment is split between interest charges and principal reduction.
The Payoff Formula
To calculate the number of months ($n$) required to pay off a balance, financial institutions use the following logarithmic formula:
Where $B$ is the balance, $i$ is the monthly interest rate, and $P$ is the monthly payment.
Frequently Asked Questions
If you only make the minimum payment, most of that money goes toward the interest charged by the bank. Only a small fraction reduces your actual debt. To see real progress, you must pay more than the minimum required amount.
Most cards use the “Average Daily Balance” method. Your Annual Percentage Rate (APR) is divided by 365 to find a daily rate, which is then applied to your balance every day of the billing cycle.
The Snowball method focuses on paying off the smallest balances first for psychological wins. The Avalanche method focuses on paying off the cards with the highest interest rates first, which saves the most money in the long run.
A balance transfer to a card with 0% introductory APR can be a great tool. It stops interest from accumulating, allowing 100% of your payment to go toward the principal. Just be sure to pay it off before the promo period ends!