Find out how long it will take to pay off your credit card and how much interest you will pay, or what monthly payment you need to be debt-free by a target date.
How credit card interest works
Card issuers quote an annual percentage rate (APR) but charge interest monthly, based on your balance. At 24.99% APR the monthly rate is about 2.08%, so a $6,000 balance builds up roughly $125 of interest in a single month. That is why balances shrink so slowly when you pay only a little more than the minimum.
Two ways to use this calculator
- Payoff time: enter what you can pay each month to see how long it takes and the total interest.
- Payment needed: enter a target number of months to see the payment that gets you there.
Worked example
A $6,000 balance at 24.99% paid at $250 a month takes 34 months to clear and costs about $2,403 in interest. In the first month, half the payment goes to interest.
To be debt-free in 24 months instead, you would need to pay about $320.20 a month.
Ways to pay off a card faster
- Stop adding new charges to the card you are paying off.
- Pay a fixed amount rather than the minimum, which falls as your balance falls and stretches the debt out for years.
- Ask for a lower rate. Card issuers sometimes agree, especially for customers who pay on time.
- Consider a 0% balance transfer if you can clear the balance during the promotional period, after the transfer fee.
- Several cards? Use the debt avalanche or debt snowball calculator to plan the order.
Frequently asked questions
Why does my statement show a different payoff time?
Statements usually assume you pay only the minimum, which shrinks as the balance falls. A fixed payment pays the card off much faster.
Does paying off a card raise my credit score?
Usually yes, because it lowers your credit utilization, one of the biggest factors in your score.
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Results are estimates for planning and education only. They are not financial, tax, legal or medical advice. Check important numbers with a qualified professional.