Payoff Summary
Time to Payoff
48 months
Total Interest
$2,072.34
Total Amount Paid
$7,072.34
Credit Card Payoff Calculator
See how long it takes to pay off your credit card balance. Compare minimum payment vs. fixed payment strategies and visualize interest savings.
Schedule (First 12 Months)
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $150.00 | $72.92 | $77.08 | $4,927.08 |
| 2 | $150.00 | $74.04 | $75.96 | $4,853.04 |
| 3 | $150.00 | $75.18 | $74.82 | $4,777.86 |
| 4 | $150.00 | $76.34 | $73.66 | $4,701.52 |
| 5 | $150.00 | $77.52 | $72.48 | $4,624.00 |
| 6 | $150.00 | $78.71 | $71.29 | $4,545.29 |
| 7 | $150.00 | $79.93 | $70.07 | $4,465.36 |
| 8 | $150.00 | $81.16 | $68.84 | $4,384.20 |
| 9 | $150.00 | $82.41 | $67.59 | $4,301.79 |
| 10 | $150.00 | $83.68 | $66.32 | $4,218.11 |
| 11 | $150.00 | $84.97 | $65.03 | $4,133.14 |
| 12 | $150.00 | $86.28 | $63.72 | $4,046.86 |
Why Minimum Payments Are Expensive
A $5,000 balance at 18.5% APR with a 2% minimum payment takes 29 years and costs $7,500+ in interest. The same balance at a fixed $300/month takes 18 months and costs only $600 in interest. This is why paying more matters.
How Credit Card Interest Works
- Daily Periodic Rate: APR ÷ 365 = daily interest rate. Applied each day to your balance.
- Compound Interest: Interest accrues on unpaid interest. Late in the payment cycle, you're paying interest on interest.
- Payment Priority: Your payment goes to interest first, then to principal. Early payments are mostly interest.
How To Use This Calculator
- Enter your current credit card balance and annual interest rate (APR).
- Choose your payoff strategy: minimum payment or a fixed monthly amount.
- Enter the minimum payment amount (usually 2-3% of balance or $25, whichever is greater).
- If using fixed payment, enter your target monthly payment.
- Review the payoff timeline, total interest, and see a comparison chart if available.
- Save a shareable link with your assumptions, then run one conservative and one optimistic scenario before deciding.
Frequently Asked Questions
What's the typical credit card minimum payment?
Usually 1-3% of the balance or $25-$35, whichever is greater. Check your card issuer's exact formula.
How is credit card interest calculated?
Daily interest rate (APR ÷ 365) × balance × days in billing cycle. Interest is compounded, so it accrues on unpaid interest too.
Why does paying more matter so much?
With minimum payments, most of your payment goes to interest, especially early on. A higher payment reduces balance faster and saves thousands in interest.
What if my APR is different each month?
This calculator uses a fixed APR. If your rate is variable, use the current rate for a baseline estimate.
Can I pay weekly or biweekly instead?
This calculator uses monthly payments. Biweekly or weekly payments can reduce interest slightly by paying down balance faster.
Is this tool free and private to use?
Yes. AI Fin Hub tools are free, no-signup browser tools. Inputs stay in your browser unless you choose to share a URL.
Can I use this with AI agents too?
Yes. Human mode is the default experience. If you use AI automation, open the optional 'For AI Agents' section for deterministic contracts.
Is this professional advice?
No. Outputs are planning estimates only — not financial, tax, or investment advice.
Disclaimer
This payoff calculator is a planning estimate only and should not replace financial or legal advice. Actual payoff times and interest charges may vary based on your card's specific terms, fees, balance transfer offers, and payment schedules. Consult your card issuer or a financial advisor for accurate information.