Credit card debt creates a simple question: how long until it’s gone?
Enter your balance, interest rate, and monthly payment in the Credit Card Payoff Calculator to see your debt-free date instantly. No signup.
Three Numbers You Need
The calculation requires three inputs. Current balance is what you owe today - check your most recent statement. Interest rate (APR) is your annual percentage rate, also on your statement (it might be called “Purchase APR”). Monthly payment is what you’ll pay each month going forward.
With these three numbers, the math shows exactly when you’ll be debt-free and how much interest you’ll pay. Small changes in payment amount can make dramatic differences in both.
Why Minimum Payments Barely Work
On a $5,000 balance at 20% APR, a $100 minimum payment means roughly $82 goes to interest while only about $18 actually reduces the balance. At that pace: 9+ years to pay off, over $5,800 in interest. You’d pay more in interest than the original debt.
Credit card companies set minimums low for a reason - they make more money the longer you take. The minimum is designed to keep you paying, not to get you out of debt efficiently.
Sample Calculations
These tables show how payment amounts affect payoff timeline and total interest.
$5,000 balance at 20% APR:
| Payment | Months | Interest | Total Paid |
|---|---|---|---|
| $100 (min) | 109 | $5,840 | $10,840 |
| $150 | 47 | $2,056 | $7,056 |
| $200 | 32 | $1,314 | $6,314 |
| $300 | 20 | $804 | $5,804 |
| $400 | 14 | $577 | $5,577 |
Doubling the payment from $100 to $200 saves $4,500 and 6+ years. The relationship isn’t linear - small increases have outsized impact.
$10,000 balance at 22% APR:
| Payment | Months | Interest | Total Paid |
|---|---|---|---|
| $200 (min) | 106 | $11,680 | $21,680 |
| $300 | 50 | $4,874 | $14,874 |
| $400 | 34 | $3,154 | $13,154 |
| $500 | 26 | $2,414 | $12,414 |
Even $100 extra monthly saves thousands. The math rewards any additional payment.
Quick Estimation
For rough planning, payment-to-balance ratios give estimates. For a 5-year payoff, aim for about 2.5% of balance monthly. For 3 years, about 4%. For 2 years, about 5%. For 1 year, about 9%.
On $5,000 that means: 5-year equals roughly $125/month, 3-year equals roughly $200/month, 1-year equals roughly $450/month. Use the calculator for exact figures with your specific rate.
The Math Behind It
Understanding the underlying calculation helps explain why minimum payments are so ineffective. Monthly interest charge equals Balance times (APR divided by 12). On $5,000 at 20% APR: $5,000 times (0.20 divided by 12) equals $83.33 monthly interest.
Any payment below $83.33 means the balance grows. The minimum payment barely exceeds this threshold, which is why progress feels invisible. For Google Sheets users, the formula =NPER(APR/12, -MonthlyPayment, Balance) calculates payoff months. Example: =NPER(0.20/12, -200, 5000) returns 32 months.
Payoff Strategies
Three main approaches exist for paying down credit card debt. Avalanche (interest-first) pays minimums on all cards while directing extra money to the highest APR card. When that’s paid, move to the next highest. Mathematically optimal - saves the most money.
Snowball (balance-first) pays minimums on all cards while directing extra money to the smallest balance. Roll that payment to the next smallest. Produces faster wins and more motivation. May cost slightly more in interest, but the psychological boost helps some people stick with the plan.
Balance transfer moves debt to a 0% promotional card. Pay aggressively during the promo period (usually 12-21 months). Watch for transfer fees (3-5%) and understand what happens when the promo ends. Only works if you can pay off during the promotional period.
Building Your Payoff Plan
Start by calculating your current payoff date using minimum payments - this is the baseline to improve. Then set a target debt-free date that’s motivating but realistic. Use the calculator to find the required monthly payment. Review your budget for extra money to redirect to debt. And critically: stop using the card. No payoff plan works while adding debt.
Finding extra money often starts with quick wins: subscriptions you forgot about, eating out reduction, entertainment spending cuts, shopping pauses. Bigger impact comes from side income dedicated to debt, tax refunds applied to balances, bonus or windfall payments, and temporary lifestyle reduction. Even $50 extra per month makes a meaningful difference on the timeline.
The Behavior Part
Calculators show the math. Behavior determines reality. Stop digging - no payoff plan works while adding new debt. Put the card away or freeze it literally in a block of ice.
Automate by setting up automatic payment above the minimum. Remove the monthly decision. Build a $1,000 buffer to keep “emergencies” from going back on the card. Track progress because watching the balance drop keeps you motivated. Update your tracker monthly.
Multiple Cards Strategy
If you have multiple cards, start by listing them with balance, APR, and minimum payment. This creates clarity about the full picture.
| Card | Balance | APR | Minimum |
|---|---|---|---|
| Store Card | $1,200 | 26% | $35 |
| Visa | $4,500 | 19% | $90 |
| Mastercard | $2,800 | 22% | $56 |
Avalanche order prioritizes by interest rate: Store Card (26%), Mastercard (22%), Visa (19%). Snowball order prioritizes by balance: Store Card ($1,200), Mastercard ($2,800), Visa ($4,500). In this example, both methods start with the Store Card. Pay minimums on all cards while attacking one at a time with extra payments.
Common Questions
How accurate are payoff calculators? Very accurate for fixed payments. Less accurate if you continue charging, if your APR changes, or if you pay variable amounts.
Should I close cards after paying off? Generally no - closing affects credit utilization and average account age. Keep open with zero balance unless there’s an annual fee you want to avoid.
What if I can only afford minimums? Even $10-20 above minimum helps. Look for any expense reduction. Consider calling for a lower interest rate.
What about debt consolidation loans? Can help if the loan rate is lower than your cards. Do the math - ensure total payments are actually lower over the life of the loan.
Should I pay off cards or build savings first? One common approach: build a small emergency buffer ($1,000) first so emergencies don’t go back on cards, then focus on debt. The tradeoff depends on your situation.