Credit Card Payoff Calculator
See the true cost of making only the minimum monthly payments on your credit card.
What this calculator does
If you don't pay your credit card balance in full, the remaining debt accrues high revolving interest (often 12%-25% APR). Many people choose to make only the 'minimum payment', not realizing this can drag the debt out for 10-20 years, with interest payments eclipsing the original principal. This calculator simulates the minimum payment journey, showing you the exact time and money required to become debt-free. If your minimum payment doesn't even cover the monthly interest, your balance will grow forever—our tool automatically flags this warning.
Formula & how it works
Monthly Interest = Remaining Principal × (Annual Rate ÷ 12). New Balance = Principal + Interest − Payment Amount.
Worked examples
- Debt of 100K at 15% APR with a 10% minimum payment (or a 1,000 floor): It takes about 11 years to pay off, costing 50K in pure interest—amounting to 150% of the principal.
- By setting a fixed payment of 5,000/month, you pay it off in just 2 years with only 16K in interest, saving you 34K.
Frequently asked questions
- Why doesn't my balance go down when I make payments?
- If your required minimum payment percentage (e.g., 2%) is lower than your monthly interest rate, you are only covering a portion of the interest. The actual debt is still growing.
- What is the fastest way to clear credit card debt?
- Prioritize cards with the highest interest rates (Avalanche method) and consider a debt consolidation personal loan at a lower rate.