Credit Card Payoff Calculator

This calculator simulates your balance month by month: each month, interest is charged on the remaining balance, and your payment first covers that interest, with the rest reducing the principal, continuing until the balance reaches zero.

Credit cards typically carry much higher interest rates than other loans, often 15-25% APR or more, so a large portion of a minimum payment can go toward interest rather than reducing the actual balance, which is why balances can take years to clear at low payment amounts.

For example, a $5,000 balance at 22% APR with a fixed $200 monthly payment takes 34 months to pay off, and costs $1,749.88 in total interest, bringing the total amount paid to $6,749.88, about 35% more than the original balance.