● Minimum payment vs fixed payment

Credit Card Payoff Calculator

See how long to pay off your credit card — and how much interest you can save by paying more than the minimum each month.

A $5,000 credit card balance at 22% APR with a fixed $150 payment takes 42 months and costs $1,231 in interest. Paying only the minimum ($25 + interest) can take over 20 years. This calculator shows both scenarios side by side.

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Balance · APR · Monthly payment · Minimum payment

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Your card

Current balance

Annual Percentage Rate (APR)

Your monthly payment

Minimum payment rule (% of balance + interest)

% + interest

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Results

With your fixed payment

Months to pay off

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Total interest paid

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Total paid

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With minimum payment only

Months to pay off

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Total interest paid

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You save vs minimum

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How it's calculated

Credit card interest: daily periodic rate

Credit cards usually compound daily (though most calculators simplify to monthly). The monthly interest charge on any balance is:

Monthly interest = balance × (APR ÷ 12) If payment > monthly interest: Principal paid = payment − interest New balance = balance − principal paid Repeat until balance reaches $0 Minimum payment = max($25, balance × min% + monthly interest) (shrinks each month as balance falls — why it takes so long)

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Months to pay off (fixed payment)
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2
Total interest paid
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3
Interest saved vs minimum only
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APR (Annual Percentage Rate): The annual interest rate on your credit card balance. Most cards: 18–26%. Divide by 12 for monthly rate.
Minimum payment: The smallest amount you can pay to keep the account in good standing. Usually 1–2% of balance plus interest — barely above interest, so balances shrink very slowly.
Revolving balance: The unpaid portion of your credit card bill that carries over to the next month and accrues interest. Avoid carrying a revolving balance — the interest cost is very high.

🔢 Worked example

A $5,000 balance at 24% APR (2% per month), paying $250/month: it takes about 26 months and costs roughly $1,450 in interest. Paying only the minimum would stretch it for years.

Disclaimer: estimates assume constant APR and no new charges. Your actual statement may use daily compounding. Check your card agreement for exact terms. Always confirm with an official source before deciding.

Frequently asked questions

Why does minimum payment take so long?

Because the minimum payment shrinks as the balance falls. At $5,000 with 2% minimum + interest at 22% APR: first month minimum = $100 + $91.67 interest = $191.67; next month it's lower. You're always paying barely more than interest — the balance drops glacially. A fixed payment of $200 pays it off in ~32 months; minimum-only can take 20+ years.

What is the average credit card APR?

In the US, average credit card APR is approximately 21–24% in 2026 (Federal Reserve data). Rewards cards tend to be higher (24–27%); store cards often reach 28–30%. Always check your specific card's APR in your statement or cardholder agreement.

Should I pay more than the minimum?

Absolutely — always pay as much as possible. Even $50 extra per month on a $3,000 balance at 20% APR saves hundreds of dollars and years of payments. The interest rate on credit card debt (18–26%) is almost always higher than any safe investment return.

Is balance transfer a good option?

Often yes — if you can qualify for a 0% introductory APR card and pay off the balance within the intro period (typically 12–21 months). Watch for: balance transfer fees (typically 3–5%), what APR kicks in after the intro period, and ensure you don't make new purchases on the card during payoff.

Why does paying only the minimum take so long?

Credit card minimum payments are typically 1–2% of the balance plus interest, or a fixed minimum ($25–$35). Because the minimum shrinks as the balance falls, you're always paying barely more than the interest — the principal barely moves. A $5,000 balance at 20% APR with minimum payments can take 20+ years to pay off.

How much interest does a credit card charge?

In the US, average credit card APR is around 21–24% in 2026. Monthly interest rate = APR ÷ 12. On a $5,000 balance at 22% APR: monthly interest = 5000 × 22%/12 = $91.67 in the first month alone.

What is the minimum payment on a credit card?

Minimum payment is usually the greater of: a fixed minimum ($25–$35) or a percentage of the balance (1–2%). Some cards use 2% of balance + monthly interest. Check your card's statement for the exact formula.

Is paying the minimum ever a good idea?

Only if you have a genuine emergency cash crunch. Even paying $50 more than the minimum each month can save thousands in interest and years off payoff time. Never carry a revolving credit card balance by choice — the interest rate (typically 18–25% APR) is almost always higher than any investment return.

Are my results saved? Do I need an account?

No account or sign-up needed. Every calculation is saved automatically in your own browser, and you can also pin a result with the save button. Nothing is sent to any server: the data stays on your device and can be erased at any time with the clear button.

How do I track my progress over time?

From the fourth entry onward a “View comparison chart” button appears, opening a line chart with every entry in time order plus an indicator panel: total change, average per entry, lowest and highest value and the period covered. You can also export the history as CSV.

About this calculator

The credit card payoff calculator shows how long it will take to clear a card balance and how much interest you will pay along the way, based on your balance, the card's interest rate and the amount you pay each month. Credit card rates are among the highest in consumer finance, so the interest can pile up quickly.

By comparing different monthly payments, you can see how paying more than the minimum dramatically shortens the payoff time and cuts the total interest. Use it to set a realistic plan and to understand the real cost of carrying a balance from month to month.

By Vinicius Fonseca · Reviewed against official sources · Updated Jul 2026 · How we calculate →