Credit card interest is charged every month on the balance you carry, so the payment you choose decides how long the debt lasts and how much it costs. A $5,000 balance at 22.99% APR paid off at $200 a month takes 35 months and costs about $1,871 in interest. Paying $300 a month cuts that to 21 months and about $1,082.
Card statements carry a "minimum payment warning" box showing how long the balance would take at the minimum and what you would pay to clear it in three years. The CFPB notes that these figures assume no new purchases. This calculator makes the same assumption.
How to use the credit card payoff calculator
- Enter the current balance and the card’s purchase APR from your statement.
- Choose whether to test a fixed monthly payment or to find the payment that clears the debt in a set number of months.
- Enter the payment or the target number of months.
- Stop using the card for new purchases while you pay it down, or the payoff date will slip.
Formula
B is the balance and P the payment. If P is not more than B × r the balance never falls. The calculator simulates each month so the last, smaller payment is counted exactly.
Worked example
$5,000 balance, 22.99% APR, $200 a month, no new charges.
- r = 0.2299 ÷ 12 = 0.019158. First month's interest: $5,000 × 0.019158 = $95.79, so only $104.21 of the first $200 reduces the balance.
- n = −ln(1 − 0.019158 × 5,000 ÷ 200) ÷ ln(1.019158) = 34.35, so 35 payments (the last one smaller).
- Total interest ≈ $1,871; total paid ≈ $6,871.
To be debt-free in 24 months instead, switch the mode: the payment is about $261.84 a month.
Ways to pay less interest
Each extra dollar goes straight to principal, so even small increases shorten the payoff noticeably. If you carry several cards, paying the highest-APR card first (the "avalanche" method) minimizes interest, while paying the smallest balance first (the "snowball" method) gives quicker wins. A balance-transfer or consolidation loan helps only if the fees and new rate are lower. Compare a fixed-rate personal loan with the loan calculator and the apr calculator. Lenders also consider your debt-to-income ratio.
How the payment changes the payoff
A $5,000 balance at 22.99% APR with no new charges:
| Monthly payment | Time to pay off | Total interest |
|---|---|---|
| $150 | 54 months | $3,045 |
| $200 | 35 months | $1,871 |
| $300 | 21 months | $1,081 |
| $500 | 12 months | $604 |
Caveats and assumptions
- Card issuers calculate interest on the average daily balance and may compound daily, so real interest can differ slightly from this monthly model.
- Assumes no new purchases, fees, promotional rates or penalty APRs.
- Minimum payments usually fall as the balance falls; this calculator uses a fixed payment, which pays off faster than minimum-only.
Frequently asked questions
How long will it take to pay off $5,000 at $200 a month?
At 22.99% APR, 35 months and about $1,871 of interest, assuming no new charges.
How much should I pay to clear a credit card in 2 years?
Use P = B × r ÷ (1 − (1 + r)^−24). For $5,000 at 22.99%, about $261.84 a month.
Why does my balance barely go down?
Most of a small payment goes to that month’s interest. At 22.99% APR, a $5,000 balance accrues about $96 of interest a month.
What happens if I only pay the minimum?
Payoff can take many years. Your statement’s minimum payment warning shows the estimate for your card.
Does paying twice a month help?
Splitting the same monthly amount into two payments can trim interest slightly, because the balance is lower for part of the month. Paying more in total helps much more.
Sources
- CFPB — The payoff box on my credit card bill — minimum payment warning and 3-year payoff figures
- CFPB — Understanding minimum payments (teaching guide, PDF) — why minimum payments take so long
- Investor.gov (SEC) — What is compound interest? — interest on a carried balance
This calculator gives estimates for planning and education only. It is not financial, tax or investment advice. Your lender, card issuer, employer or tax authority uses its own terms, fees and rounding, so confirm figures with them before deciding. See our disclaimer and how we build and check calculators.