Credit Card Payoff Calculator
Carrying a credit card balance is expensive. At the average US APR of 22.5% in 2026, a $5,000 balance paid at $100/month takes 88 months and costs over $4,300 in interest. This calculator shows exactly how long payoff takes, total interest charged, and what happens if you pay more each month.
When to use this calculator
- Find out how many months until your credit card is paid off at your current payment
- Compare the interest cost of paying $150/month vs. $300/month
- Calculate the monthly payment needed to pay off a balance within 12 or 24 months
- Understand the minimum-payment trap before making only the required payment
- Plan a debt payoff strategy after a balance transfer or consolidation
- Estimate total interest before deciding whether to carry a balance
How it works
1 min readWhat is credit card payoff time?
Credit card payoff time is the number of months required to eliminate your balance based on your APR, current balance, and monthly payment amount. At 22.5% APR, a $5,000 balance with $100 monthly payments takes 88 months, accumulating $4,321 in interest charges.
How It Works
Credit card interest compounds monthly. Each month, the card issuer applies one-twelfth of the annual APR to the remaining balance before subtracting your payment.
Formula
For a fixed monthly payment, the number of months to payoff is derived from the standard loan amortization formula:
monthly_rate = APR / 100 / 12
months = -log(1 - (balance × monthly_rate) / payment)
÷ log(1 + monthly_rate)
total_paid = months × payment
total_interest = total_paid - balanceWhen payment ≤ balance × monthly_rate, the payment does not cover the interest accruing that month and the balance never reaches zero — the minimum-payment trap.
For a target payoff period, the required monthly payment is:
payment = balance × monthly_rate × (1 + monthly_rate)^months
÷ ((1 + monthly_rate)^months - 1)Worked Example — The Minimum-Payment Trap
| Parameter | Value |
|---|---|
| Balance | $5,000 |
| APR | 22.0% |
| Monthly rate | 1.833% |
| Fixed payment | $100 |
| Months to payoff | 88 |
| Total paid | $8,766 |
| Total interest | $3,766 |
Raising the payment to $200/month cuts payoff time to 30 months and total interest to $917 — a saving of $2,849.
Limitations and When NOT to Apply
Frequently asked questions
What is the average credit card APR in the US in 2026?
The Federal Reserve reported the average credit card interest rate at approximately 22.5% APR for accounts assessed interest in late 2025, entering 2026. Rates vary from about 18% on lower-risk cards to over 29% on retail and subprime cards.
What happens if my monthly payment is less than the monthly interest?
If your payment is less than or equal to balance × (APR / 12 / 100), the balance grows every month instead of shrinking. The calculator will flag this as 'payment too low to pay off balance' rather than returning an infinite number of months.
How does this differ from using the card's minimum payment?
Card issuers typically set the minimum at 1–3% of the outstanding balance (or a $25–$35 floor). Because that percentage shrinks as the balance falls, total interest can exceed the original balance. This calculator assumes a fixed dollar payment, which pays off debt far faster.
Does this account for new charges I add to the card?
No. The calculator assumes no new purchases. Adding new charges while paying down a balance extends the payoff timeline significantly and would require a separate month-by-month simulation.
What if I have a 0% balance transfer offer?
During a 0% promotional period, set APR to 0. The calculator will divide the balance evenly over the number of months you specify — no interest accrues. Be sure to account for the balance-transfer fee (typically 3–5%) by adding it to the balance field.
What is the monthly interest rate and how is it calculated?
The monthly periodic rate is APR ÷ 12. At 22.5% APR, the monthly rate is 22.5 / 12 = 1.875%. On a $5,000 balance, that is $93.75 of interest in the first month alone — so a $100 payment reduces the balance by only $6.25.
Why does increasing my payment by $50/month make such a big difference?
Each extra dollar reduces the principal faster, which reduces the balance on which future interest is calculated — a compounding effect in reverse. On a $5,000 balance at 22.5% APR, going from $150 to $200/month saves roughly 18 months and over $700 in interest.
How accurate is the months-to-payoff calculation?
The logarithmic formula gives the exact theoretical result assuming a constant rate and fixed payment. Real issuers may round to the nearest cent and apply payments on specific cycle dates, so actual payoff may differ by one month.
Does APR include fees?
APR as disclosed on US credit cards under the Truth in Lending Act includes the periodic interest rate but generally excludes penalty fees like late fees or over-limit fees. For most payoff calculations, the stated purchase APR is the correct figure to use.