How to use this calculator
- Enter your credit card balance and APR. Both are on your monthly statement.
- Choose your plan:
- Fixed monthly payment: enter what you can pay each month to see how long it takes.
- Pay off by a deadline: enter the number of months to see the payment you’d need.
- Open Minimum payment formula to match your card’s minimum payment rule. The default is the greater of $25 or 1% of the balance plus that month’s interest.
- Under More options, set the start date. The first payment is due one month later.
The results show your debt-free date, total interest and what paying only the minimum would cost. The chart compares your plan’s balance with the minimum-payment balance, and the table shows how different payment amounts change the payoff.
How payoff is calculated
Each month, interest is charged on the balance at the APR divided by 12, and then your payment is subtracted:
The calculator repeats this until the balance reaches zero. When you choose a deadline, the payment comes from the standard loan formula, rounded up to the cent so the balance is cleared on time:
Your payment has to be larger than the first month’s interest. Otherwise the balance never goes down.
Worked example
You owe $6,000 at 22% APR and pay $250 a month.
- First month’s interest: $6,000 × 0.22 ÷ 12 = $110, so $140 of your first payment reduces the balance
- Debt-free in 32 months (2 years 8 months)
- Total interest: $1,979
Paying only the minimum (the greater of $25 or 1% of the balance plus interest), the first payment is $171.10. It falls as the balance falls, and payoff takes 20 years 5 months, with $9,764 in interest. Your $250 plan saves about $7,785.
How your payment changes the payoff
For the same $6,000 at 22% APR:
| Monthly payment | Time to pay off | Total interest |
|---|---|---|
| $150 | 6 years 1 month | $4,913 |
| $200 | 3 years 8 months | $2,791 |
| $250 | 2 years 8 months | $1,979 |
| $300 | 2 years 2 months | $1,543 |
| $400 | 1 year 6 months | $1,081 |
| $500 | 1 year 2 months | $839 |
The first extra dollars do the most work. Going from $150 to $200 a month saves over $2,100 in interest and more than two years.
The minimum payment formula we use
Each card issuer sets its own minimum in the cardholder agreement. A common structure is “the greater of” a fixed dollar floor or a percentage of the balance plus the month’s interest and fees. As one real example, Capital One’s account terms say the minimum is the greater of $25 or 1% of your balance plus new interest, late fees and a share of any annual fee. A balance under $25 is due in full.
The calculator uses that structure: by default, 1% of the statement balance plus that month’s interest, with a $25 floor. It ignores fees and past-due amounts. You can change the percentage, the floor, and whether interest is added, to match your own card. The formula has a big effect on the result. For the same $6,000 at 22%:
| Minimum payment rule | First payment | Time to pay off | Total interest |
|---|---|---|---|
| 1% + interest, $25 floor | $171.10 | 20 years 5 months | $9,764 |
| 1% + interest, $35 floor | $171.10 | 17 years 8 months | $9,349 |
| 2% + interest, $25 floor | $232.20 | 12 years | $5,057 |
| 3% of balance, $25 floor | $183.30 | 17 years 9 months | $8,219 |
Federal rules generally require your monthly statement to include a “Minimum Payment Warning” showing how long it would take to pay off the balance with minimum payments only and, in most cases, the payment needed to pay it off in 3 years. Comparing those numbers with this calculator is a good check that your formula is right.
Ways to pay it off faster
- Pay a fixed amount, not the minimum. A fixed payment stays the same as the balance falls, so more of it goes to principal every month.
- Stop adding to the balance. Put the card away while you pay it down. New charges reset the clock.
- Ask for a lower APR. A few points off the rate cuts interest straight away.
- Consider a lower-rate loan or balance transfer, but count the fees. The personal loan calculator shows a loan’s true APR including its origination fee.
- Juggling several cards? The debt payoff calculator compares the avalanche and snowball methods across up to five debts.
Assumptions and limitations
Interest is charged monthly at APR ÷ 12. Card issuers actually use a daily rate on your average daily balance, so real interest can differ slightly from month to month. The calculator assumes no new purchases, fees, promotional rates or penalty APRs, and that every payment is on time. With some minimum payment formulas the minimum never covers the interest, and the calculator will tell you when the balance would never be paid off.
Sources
- Capital One, Account terms: How do you calculate my minimum payment? (example of a 1%-plus-interest formula with a $25 floor)
- Consumer Financial Protection Bureau, Regulation Z § 1026.7(b)(12): Repayment disclosures
This calculator gives estimates for general information. Your card statement and agreement show your actual terms.
Frequently asked questions
How long will it take to pay off my credit card?
It depends on the balance, the APR and how much you pay each month. A $6,000 balance at 22% APR takes 2 years 8 months at $250 a month, with about $1,979 in interest. Paying only a typical minimum on the same balance takes more than 20 years.
How is the credit card minimum payment calculated?
Each issuer sets its own formula in the card agreement. A common structure is the greater of a fixed dollar amount or a small percentage of the balance plus that month's interest and fees. For example, Capital One's account terms use the greater of $25 or 1% of the balance plus new interest and certain fees. This calculator uses that formula by default, and you can change it to match your card.
Why does paying the minimum take so long?
With a 1%-plus-interest formula, each minimum payment covers the month's interest and only 1% of the balance. As the balance falls, so does the minimum, which keeps payoff slow. On $6,000 at 22%, the first minimum is $171.10, and the balance takes 20 years 5 months to clear, with $9,764 in interest.
How much do I need to pay to clear my card in a set time?
Switch the calculator to "Pay off by a deadline" and enter the number of months. For $6,000 at 22% APR, you'd need about $561.57 a month to be debt-free in 12 months, $311.27 for 24 months or $229.15 for 36 months. Your statement usually also shows the payment needed to clear the balance in 3 years.
Is it better to pay off a credit card or save money?
Credit card interest is usually much higher than what savings accounts pay, so paying down a card is typically the better guaranteed return once you have a small emergency fund. Many people keep a modest cash cushion so they don't need the card for surprises, and put everything else toward the balance.
Does this calculator include new purchases?
No. It assumes you stop using the card while you pay it off. New charges add to the balance and push your payoff date back. If you keep using the card, treat the result as a best case.
Updated November 2026. Results are estimates for educational purposes and depend on the inputs you provide.