Credit Card Calculator
- Updated
- Formula shown
- Free, no sign-up
Results
Paid off in 34 months (2 years 10 months) with $1,750 of interest
| Year | Paid | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $2,400.00 | $960.57 | $1,439.43 | $3,560.57 |
| 2 | $2,400.00 | $609.92 | $1,790.08 | $1,770.49 |
| 3 | $1,949.88 | $179.39 | $1,770.49 | $0.00 |
Interest is charged monthly at APR ÷ 12. Most issuers use the average daily balance, so your statement may differ slightly.
How to use the credit card calculator
- Enter the balance and the purchase APR from your statement.
- Choose a fixed monthly payment, or choose the minimum payment and set the rule your issuer uses (shown in your card agreement).
- Read the months to pay off and the total interest, and compare with the fixed payment that would clear the card in three years.
The results assume you make no new purchases and no fees or rate changes apply. Add new spending and the payoff date moves further away.
Credit card interest formula
Minimum (interest + 1%) = interest + 1% × balance, at least the floor
Minimum (percent) = p% × (balance + interest), at least the floor
New balance = balance + interest − payment
The calculator repeats this month by month until the balance reaches zero. It charges interest at APR ÷ 12 on the balance each month. Card issuers usually work out interest on the average daily balance at APR ÷ 365 (some use 360), so your statement may be a little different, but the payoff time and the comparison between payment plans are reliable.
A payment only reduces the balance if it is larger than the month's interest. When it is not, the debt never shrinks. With a percentage minimum, the payment falls as the balance falls, which is why minimum payments can stretch repayment out for decades.
Worked example: $5,000 at 22% APR
The first month's interest is 5,000 × 0.22 ÷ 12 = $91.67. A fixed $200 payment clears the card in 34 months (2 years 10 months) with $1,750 of interest. Paying only the minimum, set at interest plus 1% of the balance with a $25 floor, starts at $141.67 but takes 19 years 2 months and costs $8,100 in interest. To be done in three years you would pay $190.95 a month.
Minimum payment versus fixed payment
$5,000 balance at 22% APR, no new purchases.
| Payment plan | First payment | Time to pay off | Total interest |
|---|---|---|---|
| Interest + 1% (min. $25) | $141.67 | 19 years 2 months | $8,100 |
| 3% of the balance (min. $25) | $152.75 | 16 years 6 months | $6,718 |
| 2% of the balance (min. $25) | $101.83 | 68 years 1 month | $35,958 |
| Fixed $150 | $150.00 | 4 years 4 months | $2,798 |
| Fixed $200 | $200.00 | 2 years 10 months | $1,750 |
| Fixed $300 | $300.00 | 1 year 9 months | $1,022 |
Months to pay off $5,000 with a fixed payment
| APR | $100/month | $150/month | $200/month | $300/month | $500/month |
|---|---|---|---|---|---|
| 16% | 83 | 45 | 31 | 19 | 11 |
| 20% | 109 | 50 | 33 | 20 | 12 |
| 24% | Never | 56 | 36 | 21 | 12 |
| 28% | Never | 66 | 38 | 22 | 12 |
"Never" means the payment does not cover the monthly interest at that APR.
Choosing the right minimum payment rule
Card agreements usually set the minimum in one of two ways: the month's interest plus a small percentage of the balance, or a flat percentage of the statement balance. Either way there is a dollar floor, and when the balance is below the floor you pay the balance in full. Your agreement or the back of your statement describes the rule, and fees or past-due amounts can be added to it. If you are not sure, run both rules; the table above shows how much they differ.
Ways to pay a card off faster
- Fix your payment. Keep paying your current minimum even as the required minimum falls; that alone cuts years off.
- Check your statement's minimum payment warning. US card statements must show how long paying only the minimum would take, along with the payment needed to finish in three years.
- Several cards? Use the credit cards payoff calculator to decide the order, or compare a consolidation loan with the debt consolidation calculator.
- Balance transfers can help if the promotional period is long enough to clear the debt, but count the transfer fee and the rate afterwards.
Frequently asked questions
How long will it take to pay off $5,000 on a credit card?
At 22% APR, paying a fixed $200 a month takes 34 months (2 years 10 months) and costs about $1,750 in interest. Paying $300 a month cuts that to 21 months and $1,022.
How long does it take if I only pay the minimum?
Much longer, because the minimum shrinks with the balance. On $5,000 at 22%, a minimum of interest plus 1% of the balance (at least $25) takes 19 years 2 months and costs about $8,100 in interest. A 2% minimum would take about 68 years.
How is credit card interest calculated?
Issuers usually apply a daily rate (APR ÷ 365) to your average daily balance. Monthly that comes to about APR ÷ 12 of the balance, which is how this calculator works: $5,000 at 22% is charged about $91.67 in the first month.
What payment would pay off my card in three years?
Use the loan payment formula with 36 months. For $5,000 at 22% that is $190.95 a month, assuming no new purchases. Your statement shows a similar figure in its minimum payment warning.
What if my payment does not cover the interest?
Then the balance never goes down. On $5,000 at 22%, any fixed payment of $91.67 or less would never repay the card, and the calculator warns you. Interest-only payments keep you in debt indefinitely.