Credit Card Payoff Calculator: Discover Your Debt-Free Timeline

Credit-card interest compounds daily, so paying more than the minimum can cut payoff time by years. The average U.S. card APR reached 20.68 % in 2023 (Federal Reserve, 2023).

Credit Card Payoff Calculator

$

Enter your current credit card balance

$

Enter your planned monthly payment amount

%

Enter your credit card's annual interest rate

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How to use the tool

  1. Credit Card Balance ($): Type your current debt—e.g., $9,500 or $3,800.
  2. Monthly Payment ($): Enter the amount you can send each month—e.g., $350 or $150.
  3. Annual Interest Rate (%): Add your card’s APR—e.g., 16.0 % or 22.0 %.
  4. Calculate: Press Calculate; the tool displays the years and months until your balance reaches zero.

Underlying formula

The payoff time (in months) uses daily compounding:

$$ \text{Months}= -\frac{1}{30}\; rac{\ln\!\left[1+\frac{b}{p}\left(1-(1+i)^{30}\right)\right]}{\ln(1+i)} $$
  • b = balance
  • p = monthly payment
  • i = daily rate = APR / 365

Example 1

  • Balance $9,500, Payment $350, APR 16 % → ≈ 2 years 10 months.

Example 2

  • Balance $3,800, Payment $150, APR 22 % → ≈ 2 years 11 months.

Quick-Facts

  • Average U.S. credit-card APR: 20.68 % (Federal Reserve, 2023).
  • Typical minimum payment: 1–3 % of balance (CFPB, 2022).
  • Average card balance: $6,501 (Experian, 2023).
  • Interest compounds daily on most cards (Schulz, LendingTree Study 2023).

FAQ

What is a credit-card payoff calculator?

It estimates how many months you need to clear a balance, using your payment and APR.

How does daily compounding affect payoff time?

Daily interest adds cost every day; higher APRs extend payoff unless you raise payments (CFPB, 2022).

Why should you pay more than the minimum?

A $5,000 balance at 20 % APR takes 3 years with $200 payments, but 9 years with minimums (Bankrate Calculator, 2023).

Can lowering APR shorten payoff?

Dropping APR from 24 % to 12 % on $6,000 cuts payoff time by 7 months (Federal Reserve G.19 data).

Does the calculator include fees?

No. Add annual or late fees to your balance for a more accurate result.

How accurate is the estimate?

It assumes fixed payments and stable APR. Variable rates or extra payments change results.

Is debt snowball compatible?

Yes. Enter each card’s details to prioritize by balance under the snowball method (Ramsey Solutions, 2023).

What’s a practical monthly payment target?

Aim for at least 5 % of balance; this halves payoff time versus minimums (CFPB Consumer Credit Panel, 2022).

Important Disclaimer

The calculations, results, and content provided by our tools are not guaranteed to be accurate, complete, or reliable. Users are responsible for verifying and interpreting the results. Our content and tools may contain errors, biases, or inconsistencies. We reserve the right to save inputs and outputs from our tools for the purposes of error debugging, bias identification, and performance improvement. External companies providing AI models used in our tools may also save and process data in accordance with their own policies. By using our tools, you consent to this data collection and processing. We reserve the right to limit the usage of our tools based on current usability factors. By using our tools, you acknowledge that you have read, understood, and agreed to this disclaimer. You accept the inherent risks and limitations associated with the use of our tools and services.

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Visualize your path to financial freedom with our Credit Card Payoff Calculator infographic – your guide to strategic debt repayment and a debt-free future.

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