How it works
Credit cards are among the most expensive debts: APRs of 20–30% are common, charged monthly on whatever balance remains. Paying only the minimum can stretch repayment over many years and nearly double what you pay. This calculator shows the whole picture — months to payoff, total interest, and how the balance falls year by year.
monthly interest = balance × APR ÷ 12 · new balance = balance + interest − payment payment to clear in n months = balance × i ÷ (1 − (1 + i)⁻ⁿ), where i = APR ÷ 12Worked example. A $5,000 balance at 22% APR. First month’s interest: 5,000 × 22% ÷ 12 = $91.67. Paying a fixed $200 a month clears it in 34 months with $1,749.90 interest ($6,749.90 in total). To be debt-free in 24 months you need $259.40 a month, and interest falls to $1,225.30.
The minimum-payment trap
Minimum payments are usually 1–3% of the balance plus interest, and they shrink as the balance falls, so a large share of each payment keeps going to interest. Choosing a fixed payment above the minimum — and sticking to it — is the single biggest lever you have. US card statements are required to show how long minimum-only repayment would take; compare it with your result here.
Paying off several cards
- Debt avalanche: pay minimums on all cards and put every extra dollar on the highest-APR card. Saves the most interest.
- Debt snowball: put extra money on the smallest balance first. Costs a little more, but quick wins keep many people motivated.
- Balance transfer or consolidation: move balances to a 0% promotional card (watch the 3–5% transfer fee and the end date) or a lower-rate personal loan — and don’t run the cards back up.
Ways to cut interest
- Pay the statement balance in full when you can; most cards charge no interest on purchases during the grace period.
- Avoid cash advances — higher APR, fees, and interest from day one.
- Set up autopay for your fixed amount to avoid late fees and penalty APRs.
- Ask your issuer for a lower rate; a good payment history helps.
The calculator assumes no new purchases or fees and a fixed APR applied monthly. Your issuer may calculate interest on the average daily balance, so real figures can differ slightly.
See how your debts affect borrowing with the debt-to-income calculator, compare a consolidation loan in the loan calculator, or view a month-by-month schedule in the amortization calculator.