Enter a card’s balance and APR to see how long your payment will take to clear it, what it will cost in interest, and how much sooner you’d finish by paying a little more. Or pick a goal and see the monthly payment that gets you there.
About $96 of your first payment goes to interest. This assumes no new charges on the card and a steady rate.
| Monthly payment | Debt-free in | Total interest | Interest saved |
|---|---|---|---|
| $200 (yours) | 2 years 11 months | $1,871 | — |
| $225 (+$25) | 2 years 6 months | $1,577 | $294 |
| $250 (+$50) | 2 years 2 months | $1,366 | $506 |
| $300 (+$100) | 21 months | $1,081 | $790 |
| $400 (+$200) | 15 months | $771 | $1,100 |
Paying only the minimum: a common card minimum is 1% of the balance plus that month's interest, and at least $25. Here it starts at about $146 and shrinks as the balance falls. Paying only that would take 19 years 4 months and cost $8,489 in interest. Paying $200 a month instead finishes 16 years 5 months sooner and saves $6,618.
Your card's formula may differ. Your statement shows how long paying only your minimum would take.
| Pay it off in | Monthly payment | Total interest |
|---|---|---|
| 12 months | $470 | $644 |
| 24 months | $262 | $1,284 |
| 36 months | $194 | $1,967 |
| 48 months | $160 | $2,691 |
| 60 months | $141 | $3,455 |
For the full picture, including your budget and which way out of debt fits, run the Debt Audit.
Estimates based on the numbers you entered. Not financial advice. How the math works.
How it works
The calculator works month by month, the same way your card does. Each month, interest is added at your APR divided by 12, then your payment comes off the balance. It repeats until the balance reaches zero. In goal mode, it uses the standard loan formula to find the level payment that clears the balance in the number of months you choose.
The key number is your first month’s interest. If your payment doesn’t cover it, the balance never goes down, and the calculator will tell you. Your card statement shows a version of this too: how long paying only the minimum would take, and what you’d need to pay to clear the balance in three years.[1]
A worked example
Take a $5,000 card balance at 22.99% APR.
- Monthly interest at the start: $5,000 × 22.99% ÷ 12 = about $96. Any payment below that never reduces the balance.
- Paying $200 a month: $96 of the first payment goes to interest and $104 to the balance. As the balance falls, more of each payment goes to principal. The card is paid off in 2 years 11 months, with $1,871 in interest and $6,871 paid in total.
- Finishing in 2 years instead takes $262 a month, and total interest drops to $1,284.
- Paying only the minimum (1% of the balance plus interest, at least $25) starts at $146 and shrinks as the balance falls. It takes 19 years 4 months and costs $8,489 in interest, $6,618 more than paying $200 a month.
What the calculator assumes
- No new charges on the card while you pay it off.
- A steady APR. Promotional rates ending, penalty rates and variable rates aren’t included.
- A fixed payment in the main result and the “What if you paid more?” table.
- A typical minimum payment in the “Paying only the minimum” line: 1% of the balance plus that month’s interest, and at least $25. Most large card issuers use that formula, and $25 is the most common floor.[2] Because it shrinks as the balance falls, paying only the minimum stretches the payoff out.
- Interest calculated monthly. Card issuers’ exact methods vary, so your real total can differ slightly.
Every formula is published on How the audit works.
Have more than one debt?
The Debt Audit looks at all your debts and your budget together, compares payoff plans, and explains which way out of debt fits your numbers. It takes about five minutes, and nothing you enter is stored or sent.
Run the Debt AuditFrequently asked questions
How long does it take to pay off a credit card with minimum payments?
Often many years, because a minimum payment is mostly interest at first, and it usually shrinks as the balance falls. The calculator’s “Paying only the minimum” line estimates it with a common minimum formula. Your statement shows the exact figure for your card.
What payment do I need to pay off my card in a year?
Choose “Payment to finish by a goal” and enter 12 months. The table under the results also shows the payment and total interest for 1 to 5 years.
How much faster would paying more get me out of debt?
The “What if you paid more?” table under the results shows your payment plus $25, $50, $100 and $200 a month: how soon each would finish and how much interest each would save.
Why is my balance barely going down?
At a high APR, much of each payment goes to interest. The calculator shows how much of your first payment is interest. Paying more than the minimum, or getting a lower rate, puts more of each payment toward the balance.
Should I pay off my highest-rate card first?
Paying the highest rate first, the avalanche method, usually costs the least interest. Paying the smallest balance first, the snowball method, gives quicker wins. The snowball vs. avalanche calculator compares both for your debts.
Sources
- A box on my credit card bill says I will pay off the balance in three years if I pay a certain amount. What does that mean? Consumer Financial Protection Bureau.
- The Consumer Credit Card Market (December 2015), section 5.2.5, Minimum payments. Consumer Financial Protection Bureau.