Credit Card Calculator
Find out how long it will take to pay off your credit card balance and how much interest you'll pay. Compare fixed payments versus minimum payments.
About this Calculator
Find out how long it will take to pay off your credit card balance and how much interest you'll pay. Compare fixed payments versus minimum payments.
Formula & Calculations
Formula
Months = ln(Payment / (Payment - Balance × Rate)) / ln(1 + Rate)Where:
- Months=Number of months to pay off the balance
- Balance=Current credit card balance
- Rate=Monthly interest rate (APR / 12)
- Payment=Monthly payment amount
Assumptions
- Assumes no additional purchases are made on the card.
- Assumes a fixed monthly payment throughout the payoff period.
- Interest compounds monthly on the remaining balance.
- Minimum payment is calculated as 2% of the balance or $25, whichever is greater.
Calculation Examples
Example 1
Paying $200 per month on a $5,000 balance at 18% APR will take 32 months and cost $1,297.52 in interest.
Example 2
A $10,000 balance at high APR takes nearly 4 years to pay off at $300/month, costing over $4,000 in interest.
Frequently Asked Questions
What is APR?
APR (Annual Percentage Rate) is the annualized interest rate charged for borrowing on a credit card. It includes the nominal interest rate plus any fees, expressed as a yearly rate.
How do I avoid paying credit card interest?
Pay your statement balance in full by the due date each month. Most credit cards offer a grace period where no interest is charged if the previous balance was paid in full.
What is a minimum payment trap?
Making only the minimum payment each month extends your repayment period dramatically. A $5,000 balance at 18% APR with minimum payments could take over 20 years to pay off and cost thousands in interest.