This credit card payoff calculator helps you create a plan to become debt-free. See how long it will take to pay off your balance and how much you'll save on interest by increasing your payment.
Find your path to becoming debt-free.
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A Credit Card Payoff Calculator is a financial tool that shows you how long it will take to pay off a credit card balance based on your fixed monthly payment. It's a powerful debt free calculator because it reveals the true cost of your debt: the staggering amount of **total interest** you'll pay and the time it will take to become debt-free.
By entering your balance, APR, and planned monthly payment, you can create a debt payoff plan and see how small changes—like adding $50 to your payment—can save you thousands of dollars and get you out of debt years sooner.
To find the number of months (n) it will take to pay off your debt, this credit card interest calculator uses a formula derived from the present value of an annuity. It's a bit complex, but here is the simplified version:
n = -log(1 - (P × r) / A) / log(1 + r)
This formula will only work if your monthly payment (A) is greater than the interest charged each month (P × r). If not, your balance will never decrease.
Let's see the payoff plan for a common debt scenario:
Calculation:
1. r (Monthly Rate) = (19.99% / 12) / 100 = 0.0166583
2. First Month's Interest = $10,000 × 0.0166583 = $166.58
(Your $300 payment is high enough to cover this, so the debt is payable.)
3. n = -log(1 - (10,000 × 0.0166583) / 300) / log(1 + 0.0166583)
4. n = -log(1 - 166.583 / 300) / log(1.0166583)
5. n = -log(0.4447) / log(1.0166583)
6. n = -(-0.352) / 0.00719 = 49.03 months
n = 50 months (rounding up) or 4 years and 2 months
In this case, your Total Payments will be $15,000 ($300 x 50). This means you paid $5,000 in Total Interest on a $10,000 balance.
This debt free calculator is a motivational tool. Here’s how you can use it to build your debt payoff planner:
The "APR" you enter is the single most important factor in your debt calculation. Rates can vary wildly based on your credit score and the type of card.
The average credit card APR is often above 20%. This high interest rate is why credit card debt can be so difficult to pay off without a dedicated plan.
This calculator shows 'Never Paid Off' if your monthly payment is not high enough to cover the interest charged each month. Your balance will actually grow over time. To pay off the debt, your payment must be greater than the (Balance × Monthly Interest Rate).
The fastest way is to pay as much as you can over the minimum payment. Two popular methods are the 'Avalanche' method (paying off the highest-interest card first) and the 'Snowball' method (paying off the smallest balance first for a psychological win).
This calculator is designed to analyze one credit card balance at a time. It does not automatically apply a 'debt stacking' or 'snowball' method. It simply shows you the payoff timeline for a single balance with a fixed monthly payment.
Getting out of debt is the first step toward building wealth. Once your debt is cleared, start growing your savings with our SIP Calculator or Compound Interest Calculator.