Why do minimum payments take so long?
Minimum payments (typically 2-3% of balance) barely cover interest charges. At 20% APR on $5,000, minimum payments could take 15+ years and cost $4,000+ in interest.
Debt Management
Credit Card Debt Payoff Planner
Find out how long until you pay off your credit card and how much interest and fees you'll pay along the way.
Erase High-Interest Balances
Understand the costs of your credit card and accelerate your debt-free journey.
$
%
$
$
$
What this calculator does
A credit card debt payoff planner calculates how long it takes to eliminate credit card debt and how much interest you'll pay. It compares minimum payment strategies to accelerated payoff plans, showing how extra payments dramatically reduce both time and total cost.
How it works
You input your current balance, APR, and monthly payment. The calculator simulates month-by-month payoff, showing how each payment splits between interest and principal. It compares minimum payments to fixed or increased payments, revealing time and interest savings.
Formula
Monthly Interest = Balance × (APR ÷ 12 ÷ 100). Principal Payment = Monthly Payment − Interest. New Balance = Old Balance − Principal. This repeats until balance is zero. Total Interest = Sum of all monthly interest charges.
Tips for using this calculator
- Pay more than the minimum—minimum payments can take decades
- Use the avalanche method: pay highest APR cards first
- Consider balance transfer cards with 0% intro APR
- Automate payments above minimum to ensure consistency
- Don't add new charges while paying off debt
Frequently asked questions
Should I pay smallest balance or highest rate first?
Mathematically, highest rate first (avalanche) saves the most money. However, paying smallest first (snowball) provides psychological wins that motivate some people. Choose what works for you.
Do balance transfers really help?
Yes, if you pay off the transferred balance before the intro period ends. A 0% APR card eliminates interest for 12-21 months. But transfer fees (3-5%) and reverting to high rates make this risky if you can't pay off in time.