Credit Card Payoff Calculator
Enter your balance, APR, and the payment you can make every month. The calculator shows your debt-free date, how much interest you will pay, and a year-by-year breakdown — all in your browser, nothing leaves your device.
Your payoff plan
Payoff schedule (by year)
| Year | Paid | Principal | Interest | Balance |
|---|
How it works
Credit card interest is charged every month on the balance you still owe. Each payment first covers that month's interest; whatever is left reduces the balance. That is why the same payment pays off a small balance fast and a large balance slowly — and why the first months of any payoff plan feel like treading water.
The math is simple to check. At 24.99% APR, a $5,000 balance racks up about $104 of interest in the first month. A $200 payment therefore puts only about $96 toward the balance. As the balance shrinks, the interest shrinks with it, so more of each payment goes to principal — the plan accelerates on its own.
Two numbers matter most: the APR and the monthly payment. Cutting the APR by a few points (a balance transfer, a lower-rate card, or a call to your issuer) helps, but raising the payment helps more, because every extra dollar goes straight to principal. Even $25 extra a month can cut months off the plan and hundreds off the interest — try it in our extra payment calculator.
Frequently asked questions
How is credit card interest calculated?
Interest is charged monthly on your balance: balance × APR ÷ 12. On a $5,000 balance at 24.99% APR, the first month's interest is about $104. Your payment covers that interest first; the rest reduces the balance.
Why does the balance barely move at first?
Because early payments are mostly interest. As the balance falls, the monthly interest falls too, so more of each payment goes to principal. The payoff accelerates over time without you changing anything.
What monthly payment should I aim for?
At minimum, pay more than one month's interest or the balance grows. A good rule of thumb: pay at least 2–3% of the balance each month, and add any extra you can — the extra goes straight to principal.
Does paying more than the minimum really help that much?
Yes. On a $5,000 balance at 24.99%, paying $200/month takes 3 years and about $2,100 in interest. Paying $250/month cuts it to about 2¼ years and about $1,500 in interest. Small increases compound.
Is this calculator exact?
It is exact for a fixed APR and a fixed monthly payment with no new charges. Real cards vary: APRs change, new purchases add to the balance, and late fees can apply. Treat the result as a plan, not a promise.
Recommended resources
LendingTree
Compare balance transfer cards and personal loans from multiple issuers in one place.
Learn more →Experian
Check your credit report and score for free — and see how payoff progress affects it.
Learn more →We may earn a commission if you click these links, at no extra cost to you.