Credit Card Payoff Calculator

How to pay off credit card debt faster

Credit card interest compounds monthly, so a high APR can keep you stuck paying mostly interest. The fix is simple: pay more than the minimum. Even a small increase to your monthly payment can cut months — sometimes years — and hundreds in interest off your payoff.

• Always pay more than the minimum if you can.
• Tackle the highest-APR card first (avalanche) to save the most interest.
• Ask for a lower APR or use a 0% balance-transfer offer if you qualify.

Worked example: when a payment reduces the balance

With a $3,000 balance and 24% APR, the model's monthly interest rate is 2%. The first month's interest is therefore $60. A $150 payment reduces the balance to $2,910, assuming no purchases or fees. In the second month, interest is $58.20 and the balance after another $150 payment is $2,818.20. This is why the portion going toward principal grows as you repay.

Why the calculator can say “Never”

At the same starting balance and rate, a $60 payment only covers the first month's interest. The principal does not fall in this simplified model. A payment below $60 lets the balance grow. “Never” means the fixed payment cannot amortize the entered balance under these assumptions; it is not a prediction of what your issuer will require as a minimum payment.

Use the result as a repayment scenario

Keep the balance and APR fixed and compare $150 against $200 per month. Record both the payoff time and total interest. Choose an amount that remains workable alongside other bills, and rerun the estimate if you make another purchase or your rate changes.

The tool adds interest once per month before applying a fixed payment and caps the final payment at the remaining balance. It does not model daily balance calculations, promotional rate expiry, late fees, multiple APR categories or minimum payments that shrink each month. Your statement's payoff information is a better comparison when those details matter.

Read the calculation assumptions and report discrepancies with the balance, APR and payment you entered through our corrections contact.

Examples and assumptions updated September 28, 2026. Amounts are illustrative, not current product quotes.