Credit Card Payoff Calculator

How to use this calculator

Bankrate’s credit card payoff calculator can help you figure out how long it will take you to get rid of your card balance — or how much you need to pay each month to pay off the debt in the desired timeframe. You’ll also see how much interest you’ll owe in either scenario.

To use the calculator, enter your current card balance along with the interest rate. Next, you can add your monthly payment amount to see how many months it will take to free yourself from debt. Alternatively, you can input how many months you would like for your debt to be resolved and find what your estimated monthly payment should be to achieve that goal.

Factors that affect your credit card balance

Several factors influence how quickly you can pay off your card balance and how much you’ll pay in interest, including:

• Your current balance: The higher the balance, the more interest accrues each month. This, in turn, can extend the time it takes you to pay off the debt.
• Your card’s APR: A higher interest rate increases the portion of each payment that goes toward interest rather than reducing the principal balance.
• Your monthly payment amount: A larger monthly payment reduces the balance faster and decreases the total interest you’ll pay over time.

The calculator uses standard amortization logic, meaning your payment is applied to interest first before reducing your card balance. The process repeats each billing cycle until the balance reaches zero.

Note that the calculator assumes the interest rate stays the same, and you aren’t making any new purchases while you’re paying down the debt. It also doesn’t account for any potential late payments which can trigger additional fees and a higher APR. Additionally, transactions like a cash advance aren’t included as they come with separate terms and a different interest rate.

The default numbers you see in the calculator are close to the national averages, and the suggested minimum payment is based on those.

Understanding your results

The calculator can help you create a credit card debt payoff strategy or figure out if your current payoff plan is optimal. 

When it comes to card debt, the overall amount of interest you pay over time is usually the biggest unpleasant surprise, especially when you compare it to your original balance. You might also realize that your current payment amounts will keep you in debt for longer than you’re comfortable with.

For example, let’s say you have a $7,000 balance on your credit card, and your APR is 21%. You’ve been paying $200 monthly because the amount fits comfortably in your budget. However, the calculator reveals that at this rate, you might be in debt for about four and a half years, and almost $4,000 of your money will go toward interest. Obviously, this is not ideal as the APR charges will amount to more than half of your original balance.

You decide you should lower the total interest paid and cut the timeframe to two years. In the calculator, instead of your current monthly payment, you enter your desired timeframe of 24 months. You find that you need to increase your monthly payment to $359 to reach your goal, which would also decrease the total amount of interest you’ll pay to just $1,632.

If that sounds doable, you can revise your budget and allocate more money toward credit card payments. If it doesn’t, you can continue tweaking the numbers until you find the best possible repayment scenario in your situation. 

Next steps to cutting down your credit card debt

Crunching the numbers is often just the first step to getting rid of debt. Of course, if you can easily increase your monthly payments to pay off your card balance sooner, saving a good sum on APR charges, it might be a simple task. However, you might find you need a different repayment strategy to successfully pull yourself out of card debt — and, perhaps, some additional tools.

For instance, paying off your card balance with a personal loan could help you lower the interest rate on your debt. Even better, a 0% APR card with an intro offer on balance transfers would allow you to pay no interest for the duration of the promotional period, which on some cards can be close to two years. Note, however, that either of these strategies will likely require good credit (or a FICO score of 680 or higher). 

Further, if you carry debt on multiple credit cards, it should also inform your approach. In this case, you want to look at both balances and interest rates and decide whether you want to prioritize long-term savings or short-term wins to keep you going. And if the debt feels overwhelming no matter how much you tweak the numbers in your calculations, it might be a good idea to look into credit counseling for professional support.

Related calculators and resources

If you’re thinking about transferring your card balance as the next step, Bankrate’s balance transfer calculator may be helpful. By using this calculator, you can estimate how much interest you’ll pay if you continue to use your current card compared to the interest and fees you’ll pay if you move the balance to a new card with a promotional APR offer. Check the current balance transfer card offers to see what’s available on the market.

If you have multiple cards you need to pay off, Bankrate’s debt consolidation calculator can help you estimate potential savings from paying off your card debt with a personal loan. You also have the option to add your installment loans, such as auto loans and student loans.