See how long it takes to pay off your credit card and how much interest you'll save
Enter your credit card balance and APR. You can either use the minimum-payment default or set a fixed monthly payment you can afford. The calculator shows how long it takes to become debt-free and the total interest paid — and how much faster you finish with a higher payment.
Each month, interest accrues on the outstanding balance at APR ÷ 12. Your payment covers that interest first, and the rest reduces the balance. Because the interest charge compounds monthly on the remaining balance, minimum payments can stretch a debt for years.
A $6,500 balance at 21.99% APR paid with the minimum payment takes about 4 years 2 months and costs $3,471 in interest on top of the balance. Doubling your payment roughly halves both the time and the interest.
Most credit card issuers calculate the minimum payment as either a percentage of your balance (typically 1-3%) or a fixed dollar amount (usually $25-$35), whichever is greater. This calculator uses the standard formula: max(1% of balance, $25). As your balance decreases, your minimum payment also decreases.
Credit cards have very high interest rates (often 20-25% APR). When you pay only the minimum, most of your payment goes toward interest rather than principal. On a $6,500 balance at 21.99% APR, paying the minimum takes over 7 years and costs more than $5,000 in interest alone.
Two popular methods: Avalanche method — pay extra toward the card with the highest APR first (saves the most money). Snowball method — pay extra toward the smallest balance first (quick wins build momentum). Mathematically, the avalanche method saves more interest.
A balance transfer moves your existing credit card debt to a new card with a 0% introductory APR (typically 12-21 months). This can save thousands in interest, but watch for balance transfer fees (usually 3-5%) and whether you can pay off the full balance before the intro period ends.