Credit card payoff calculator

Last updated: September 2026 · Verified by Hugo Cardozo.

Why the payoff time isn't a simple division

Dividing the balance by the payment doesn't work, because interest keeps getting added to what you owe every single month. Part of every payment goes to that month's interest first, and only what's left actually reduces the balance — which is why a small increase in payment can cut the payoff time far more than it seems like it should.

How the minimum payment trap works

Most card issuers set the minimum payment as a small percentage of the current balance (commonly 1-3%), often with a dollar floor. As the balance slowly drops, the required minimum drops too — so the payment keeps shrinking right along with the tiny bit of progress being made. The result is a payoff timeline that can stretch into decades and a total interest bill that can exceed the original balance several times over.

Worked example

A $5,000 balance at 20% APR, paid at a fixed $200/month, is paid off in about 33 months (2 years 9 months) and costs about $1,522 in total interest. The same balance paying only the minimum (2% of the balance, $25 floor) takes about 524 months — nearly 44 years — and costs roughly $20,210 in interest, more than four times the original balance. The payment amount is the single biggest factor in how expensive credit card debt actually becomes.

Why extra payments matter more early

Because interest is calculated on the current balance, every extra dollar paid while the balance is still high saves more future interest than the same dollar paid later. Even a modest, permanent increase to a fixed monthly payment — rather than paying the minimum most months and occasionally paying more — tends to outperform an inconsistent payoff approach.

Frequently asked questions