Credit Card Payoff Calculator
Enter your balance, APR, and monthly payment to see how long payoff takes and how much interest you'll pay — plus a comparison to paying the minimum.
How credit card interest works
Credit card interest compounds daily. Your APR is divided by 365 to produce a daily periodic rate, which is applied to your average daily balance each day. At the end of the billing cycle, all that accrued interest is added to your balance.
This is why paying only the minimum is costly: most of your minimum payment goes toward interest, barely touching the principal. On a $3,500 balance at 22% APR, paying $100 per month takes over 4 years and costs around $1,600 in interest. Bumping that to $200 per month cuts it to under 2 years and saves roughly $1,000.
Frequently asked questions
What is the minimum payment on a credit card?
Most credit card issuers set the minimum at either a flat amount (often $25–$35) or a percentage of the balance (typically 1–3%), whichever is greater. This calculator uses max($25, 2% of balance) as an approximation.
How is credit card interest calculated?
Interest accrues daily. Your APR is divided by 365 to get a daily rate, which is multiplied by your average daily balance. For monthly estimates, dividing the APR by 12 gives a close approximation.
Should I pay more than the minimum?
Yes — paying only the minimum dramatically increases the time and total interest you pay. Even an extra $50 per month can cut your payoff time by months and save hundreds in interest. Use the comparison row above to see the difference.
Disclaimer: Estimates only. Assumes a fixed APR and fixed monthly payment for the life of the debt. Actual results depend on your card's specific terms. Not financial advice.