💳 Credit Card Payoff
Find out how long it will take to pay off a credit card and how much interest you will pay – or what to pay each month to be debt-free by a target date.
Quick answer: Paying $200 a month on a $5,000 credit card balance at 22% APR clears the debt in 34 months (2 years 10 months) and costs $1,749.90 in interest.
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Credit Card Payoff inputs
Result
Debt-free in
2 years 10 months
paying $200.00 a month
| Balance | $5,000.00 |
| Total interest | $1,749.90 |
| Total paid | $6,749.90 |
- First month’s interest
- $91.67
- Interest as share of balance
- 35%
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $1,439.43 | $960.57 | $3,560.57 |
| 2 | $1,790.06 | $609.94 | $1,770.51 |
| 3 | $1,770.51 | $179.39 | $0.00 |
Show monthly schedule (34 payments)
| # | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $200.00 | $108.33 | $91.67 | $4,891.67 |
| 2 | $200.00 | $110.32 | $89.68 | $4,781.35 |
| 3 | $200.00 | $112.34 | $87.66 | $4,669.01 |
| 4 | $200.00 | $114.40 | $85.60 | $4,554.61 |
| 5 | $200.00 | $116.50 | $83.50 | $4,438.11 |
| 6 | $200.00 | $118.63 | $81.37 | $4,319.48 |
| 7 | $200.00 | $120.81 | $79.19 | $4,198.67 |
| 8 | $200.00 | $123.02 | $76.98 | $4,075.65 |
| 9 | $200.00 | $125.28 | $74.72 | $3,950.37 |
| 10 | $200.00 | $127.58 | $72.42 | $3,822.79 |
| 11 | $200.00 | $129.92 | $70.08 | $3,692.87 |
| 12 | $200.00 | $132.30 | $67.70 | $3,560.57 |
| 13 | $200.00 | $134.72 | $65.28 | $3,425.85 |
| 14 | $200.00 | $137.19 | $62.81 | $3,288.66 |
| 15 | $200.00 | $139.71 | $60.29 | $3,148.95 |
| 16 | $200.00 | $142.27 | $57.73 | $3,006.68 |
| 17 | $200.00 | $144.88 | $55.12 | $2,861.80 |
| 18 | $200.00 | $147.53 | $52.47 | $2,714.27 |
| 19 | $200.00 | $150.24 | $49.76 | $2,564.03 |
| 20 | $200.00 | $152.99 | $47.01 | $2,411.04 |
| 21 | $200.00 | $155.80 | $44.20 | $2,255.24 |
| 22 | $200.00 | $158.65 | $41.35 | $2,096.59 |
| 23 | $200.00 | $161.56 | $38.44 | $1,935.03 |
| 24 | $200.00 | $164.52 | $35.48 | $1,770.51 |
| 25 | $200.00 | $167.54 | $32.46 | $1,602.97 |
| 26 | $200.00 | $170.61 | $29.39 | $1,432.36 |
| 27 | $200.00 | $173.74 | $26.26 | $1,258.62 |
| 28 | $200.00 | $176.93 | $23.07 | $1,081.69 |
| 29 | $200.00 | $180.17 | $19.83 | $901.52 |
| 30 | $200.00 | $183.47 | $16.53 | $718.05 |
| 31 | $200.00 | $186.84 | $13.16 | $531.21 |
| 32 | $200.00 | $190.26 | $9.74 | $340.95 |
| 33 | $200.00 | $193.75 | $6.25 | $147.20 |
| 34 | $149.90 | $147.20 | $2.70 | $0.00 |
How credit card payoff is calculated
Each month interest is added to your balance, then your payment is subtracted. Only the part of the payment above that month's interest reduces the debt, which is why small payments take so long.
Interest = Balance × APR ÷ 12 · New balance = Balance + Interest − Payment
To be debt-free in a set number of months, the calculator uses the loan payment formula instead: Payment = B × r ÷ (1 − (1 + r)−n), with r = APR ÷ 12.
Worked example
You owe $5,000 at 22% APR. The first month's interest is $91.67, so a $200 payment reduces the balance by only $108.33. Keep paying $200 and the card is clear after 34 months, with $1,749.90 of interest – about 35% on top of what you borrowed.
How the payment changes the cost ($5,000 at 22%)
| Monthly payment | Effect |
|---|---|
| $100 | 137 months (over 11 years), $8,678.34 interest |
| $200 | 34 months, $1,749.90 interest |
| $300 | 21 months, $1,021.61 interest |
Ways to pay off cards faster
- Pay a fixed amount rather than the shrinking minimum, and add any windfalls.
- Stop adding new charges to the card you are paying down.
- Ask your issuer for a lower APR – a good payment history makes this more likely to succeed.
- Consider a 0% balance transfer or a lower-rate personal loan to consolidate.
Once the card is paid off, redirect the same monthly payment into savings – you are already used to living without that money.
Estimates for educational purposes, not financial advice.
Frequently asked questions
How is credit card interest calculated?
Card issuers divide the APR by 365 for a daily rate and charge it on your average daily balance. This calculator uses the close monthly approximation: balance × APR ÷ 12 each month.
What happens if I only pay the minimum?
Minimum payments are often just interest plus 1% of the balance, so most of your money goes to interest and payoff can take decades. If your payment is at or below the monthly interest, the balance never falls – the calculator warns you.
Should I pay off the highest-interest card first?
Mathematically, yes – the "avalanche" method (highest APR first) saves the most interest. The "snowball" method (smallest balance first) gives quicker wins that help some people stay motivated.
Will a balance transfer help?
A 0% balance transfer can save a lot if you clear the balance before the promotional period ends. Factor in the transfer fee (often 3–5%) and the rate that applies afterwards.