You enter your current balance, the card's annual percentage rate (APR), and a fixed monthly payment. The tool divides the APR by 12 to get a monthly rate, then simulates each month: it adds interest to the remaining balance and subtracts your payment. It repeats until the balance reaches zero or 600 months, whichever comes first. The calculation assumes no new charges, no fees, and a constant APR — real payoff may differ if any of those change.
Credit card APRs typically range from 18–28%. Because interest compounds monthly on the remaining balance, even modest balances can generate substantial interest over years of minimum payments. Paying more than the minimum each month is the single most effective way to reduce total interest.
This calculator assumes no new charges. Any additional spending adds to the balance and extends the payoff timeline. For an accurate estimate, either stop using the card or add your expected monthly charges to the balance.
The "avalanche" method — paying minimums on all cards and putting extra toward the highest-rate card — saves the most interest. The "snowball" method targets the smallest balance first for psychological momentum. Both work; pick the one you will stick with.
A 0% balance transfer card can eliminate interest temporarily (usually 12–21 months), letting every dollar go toward principal. Watch for transfer fees (typically 3–5%) and make sure you can pay off the balance before the promotional rate expires, or you may owe back-interest.
Card issuers use a similar daily periodic rate calculation, but they also factor in fees, penalty APRs, and grace periods. This calculator uses monthly compounding with a fixed APR, which gives a close approximation for planning purposes.
Estimate only. Results reflect your inputs and standard formulas — they are not financial, tax, legal, health, or investment advice. Verify important decisions with a qualified professional.