How much interest will I pay on a credit card balance?

Interest is charged on the balance every month at the APR divided by twelve. On $5,000 at 22% that is $91.67 the first month alone. Over the whole payoff, paying $200.00 a month, the total interest comes to $1,749.88. The slower you pay, the more of your money goes to interest instead of the balance.

Why does paying only the minimum take so long?

The minimum payment is usually a small percent of the balance, so as the balance shrinks the payment shrinks with it — and most of each payment is eaten by interest. On this $5,000 example the minimum stretches payoff to 80 years 8 months and costs $43,419 in interest, versus 2 years 10 months and $1,749.88 on a fixed $200.00. A fixed payment that never drops is the single biggest thing you can do.

What payment do I need to pay off my card by a set date?

Use the level-payment formula M = P·i ÷ (1 − (1 + i)^−n), where n is the number of months. To clear $5,000 at 22% in 24 months you would pay $259.39 a month. Switch the calculator to "Pay off by a date" and enter your deadline to get the exact figure for your own balance.

Is it better to pay off a card or transfer the balance?

A 0% balance-transfer card can pause interest for 12–21 months, so every dollar goes to principal — but there is usually a transfer fee of 3–5%, and the rate jumps after the promo ends. It pays off when you can clear most of the balance during the 0% window. If you cannot, a fixed personal loan at a lower APR may cost less overall. Compare the total cost, not just the headline rate.

Does the calculator account for new purchases?

No — it assumes you stop charging the card and only pay it down. New purchases add to the balance and reset the math, which is why paying off a card while still using it feels impossible. To pay a card off, treat it as frozen and put the calculated payment toward it every month.

What is APR versus APY on a credit card?

APR is the annual rate the card quotes; the monthly rate is the APR divided by twelve. Because unpaid interest is added to the balance and then charged interest itself, the effective yearly cost — the APY — is slightly higher than the APR. This calculator compounds monthly, which is how card issuers actually bill.

Should I use the avalanche or snowball method for several cards?

With more than one card, the avalanche method pays the highest-APR card first and costs the least interest; the snowball method pays the smallest balance first for quick wins and motivation. Both beat spreading extra money evenly. Use this calculator on each card, then send every spare dollar to the one your method targets while paying the minimum on the rest.

Finance

Credit Card Payoff Calculator

Months to pay off a card is n = −ln(1 − i·B/P)/ln(1+i), where B is the balance, P the monthly payment and i the APR ÷ 12. Enter your balance, APR and payment to see the payoff time and total interest — or set a target date to get the payment it takes.

Your card

Card balance

What you owe on the card right now

Purchase APR

The card’s annual interest rate — check your statement

What do you want to solve?

Monthly payment

What you can put toward the card each month

Minimum payment (for the trap)

Percent of balance

Dollar floor

Time to pay it off

2 years 10 months

$200.00/mo · $1,749.88 interest

Balance $5,000Interest $1,750Total $6,750

Total interest

$1,750

Total paid

$6,750

Time to payoff

2 years 10 months

Interest share

25.9%

The minimum-payment trap

Paying only the minimum (starting at $100.00) drags payoff out to 80 years 8 months and costs $43,419 in interest — $41,670 more than your plan, and 77 years 10 months longer.

Estimate only. It assumes a fixed APR, no new charges, and interest compounding monthly. Fees and a variable rate will change the real figure.

Try a scenario

No sign-up · Free

The basics

How a credit card balance is paid off

A card balance is a loan with no fixed term — you set the pace by how much you pay. Two ideas explain why the pace matters so much.

interest = balance × (APR ÷ 12)

Interest compounds every month

Each month the card charges interest on whatever you still owe. Unpaid interest is added to the balance and then charged interest itself, so a balance left alone grows on its own.

$5,000 at 22% → $91.67 of interest in month one

a fixed payment beats a shrinking one

The payment sets the payoff date

A payment that stays the same sends more to principal every month as interest falls. A minimum payment shrinks with the balance, so it barely moves the needle.

$200.00/mo clears it in 2 years 10 months; the minimum drags on for 80 years 8 months

Method

How to work out a payoff by hand

Four steps take you from a balance and a payment to the payoff time and the interest.

1
Turn the APR into a monthly rate
Card interest is billed monthly, so divide the APR by twelve for the periodic rate i. This is the rate charged on whatever balance is left each month.
i = 22% ÷ 12 = 0.018333 per month
2
Charge interest on the balance
Each month the balance B earns interest B·i. Whatever is left of your payment after covering that interest is what actually reduces the balance.
$5,000 × 0.018333 = $91.67 interest month one
3
Solve for the number of payments
With a fixed payment P, the months to reach a zero balance is a closed formula — no month-by-month grind needed.
n = −ln(1 − i·B ÷ P) ÷ ln(1 + i) = 34 payments
4
Add up the interest
Total interest is everything you pay in minus the balance you started with. The slower the payoff, the larger that gap.
$6,749.88 paid − $5,000 balance = $1,749.88 interest

Worked examples

The same balance at three payments

$5,000 at 22% APR. A bigger payment does two things at once — it ends the debt sooner and slashes the interest.

Monthly payment	Time to payoff	Total interest	Total paid
$150	4 years 4 months	$2,798	$7,798
$200	2 years 10 months	$1,750	$6,750
$300	1 year 9 months	$1,022	$6,022

Raising the payment from $150 to $300 cuts 2 years 7 months off the payoff and saves $1,776 of interest.

Where it shows up

When the payoff number matters

Three moments where knowing the real payoff cost changes the decision.

budget the payment

Setting a monthly plan

A fixed payment you can hold every month is the plan. The calculator turns it into a real date you can aim at.

Pick a payment, see the payoff date

0% transfer math

Weighing a balance transfer

A transfer only wins if the interest you skip beats the transfer fee. Compare the payoff cost here against the fee before you move a balance.

Fee vs interest saved in the 0% window

many cards

Avalanche vs snowball

With several cards, run each one here, then send every spare dollar to the card your chosen method targets first.

Target the highest APR, or the smallest balance

Reference

Fixed payment versus the minimum

On the $5,000 example at 22%, holding a fixed payment instead of drifting down with the minimum is worth years and thousands of dollars.

Approach	Time to payoff	Total interest	What happens
Minimum only (2%)	80 years 8 months	$43,419	The payment shrinks with the balance, so interest eats most of it.
Fixed $200/mo	2 years 10 months	$1,750	A steady payment sends more to principal every month.

Worth knowing

Things that move the payoff

None of these are in the headline balance, and each can change the plan.

freeze new charges

Stop using the card

Paying a card down while still spending on it resets the math. Treat the card as frozen until the balance is clear.

0% intro windows

Balance transfers

A 0% transfer pauses interest, but the fee and the post-promo rate decide whether it wins. It works best when you can clear most of the balance in the window.

pay more than once a month

Payment timing

Because interest is based on the average daily balance, paying earlier or twice a month lowers that average and trims the interest.

variable rates drift

APR can change

Most card APRs are variable and move with the prime rate, so a rising rate lengthens payoff unless you raise the payment to match.

highest APR first

Avalanche saves the most

With several balances, paying the highest-APR card first costs the least interest overall, even if it is not the smallest balance.

fees add up

Watch the fees

Late fees and over-limit fees add straight to the balance and can trigger a penalty APR, so keep at least the minimum on time every month.

Quick chart

How long to pay off a card, by APR and payment

Pick a balance and read the payoff time at every APR from 15% to 30%across common monthly payments. A bigger payment moves you sharply up the table.

Card balance

Months to clear $5,000, by APR and monthly payment.

APR	$100/mo	$150/mo	$200/mo	$300/mo	$400/mo	$500/mo
15%	6 years 7 months	3 years 8 months	2 years 7 months	1 year 7 months	1 year 2 months	11 months
18%	7 years 10 months	3 years 11 months	2 years 8 months	1 year 8 months	1 year 2 months	11 months
20%	9 years 1 month	4 years 2 months	2 years 9 months	1 year 8 months	1 year 3 months	1 year
22%	11 years 5 months	4 years 4 months	2 years 10 months	1 year 9 months	1 year 3 months	1 year
24%	—	4 years 8 months	3 years	1 year 9 months	1 year 3 months	1 year
26%	—	5 years	3 years 1 month	1 year 9 months	1 year 3 months	1 year
28%	—	5 years 6 months	3 years 2 months	1 year 10 months	1 year 3 months	1 year
30%	—	6 years 1 month	3 years 4 months	1 year 10 months	1 year 4 months	1 year

“—” means the payment does not cover the monthly interest, so the balance never falls.

How we calculate this

The formula and our assumptions

We compound interest monthly, exactly as a card issuer bills, and solve for the payoff time or the payment. We show the working so you can check it.

n = −ln(1 − i·B ÷ P) ÷ ln(1 + i)

Months at a fixed payment

B is the balance, P the monthly payment, and i the APR divided by twelve. If the payment does not cover the first month’s interest, the balance never falls.

M = P·i ÷ (1 − (1 + i)^−n)

Payment for a target date

To be debt-free in n months, this is the level payment that gets you there — the same amortizing-loan formula, solved for the payment.

The APR is fixed and interest compounds monthly.
No new purchases, fees or penalty rates are added during payoff.
The minimum-payment model uses a percent of the balance with a dollar floor, recalculated each month.
Real issuers use the average daily balance, so your statement may differ by a few dollars.

Ways to pay it off

Routes to clear the balance

Rows are ordered by borrower fit, not by any payout — the route that suits your situation comes first for you. Rates and fees are described as ranges only; get exact terms from the provider.

Route	Example	Best for	Notes
Pay a fixed amount	Same dollar figure every month	Most people, most balances	The simplest and often cheapest route — a payment that never drops clears the card far faster than the minimum.
0% balance-transfer card	12–21 month intro APR	Good credit, can clear it in the window	Pauses interest so every dollar cuts principal, but expect a 3–5% transfer fee and a rate jump after the promo.
Fixed personal loan	Debt-consolidation loan	Large balance, want one fixed payment	Swaps a variable card rate for a fixed installment rate and a set payoff date. Compare the APR including any origination fee.
Debt management plan	Non-profit credit counseling	Multiple cards, struggling to keep up	A counselor negotiates a lower rate and one monthly payment. Free or low-cost through a reputable non-profit agency.

CalculateThis.io is not a lender and does not make credit decisions. When we add partner links they will be marked as sponsored, and we may earn a commission if you apply through one — it does not change the rate you are offered.

Sources

Where the method comes from

Consumer Financial Protection Bureau — how credit card interest and minimum payments work.
CARD Act of 2009 — the minimum-payment disclosure that shows the years-to-payoff on statements.
Standard amortization formula for a level-rate revolving balance.

FAQ

Common questions

It depends on the balance, the APR and how much you pay each month. Paying $200.00 a month on a $5,000 balance at 22% APR clears it in 2 years 10 months and costs $1,749.88 in interest. Pay $300.00 instead and it is gone in 1 year 9 months with only $1,021.60 of interest. The month-by-month formula is n = −ln(1 − i·B ÷ P) ÷ ln(1 + i), where i is the APR divided by 12.

Keep going

Related calculators

Personal Loan Calculator

Keep reading