Credit Card Payoff Calculator
Find out how long it will take to pay off your credit card and how much interest you'll pay.
Frequently Asked Questions
How is credit card interest calculated?
Credit card interest is calculated using your APR (Annual Percentage Rate). The monthly interest rate is APR ÷ 12. Each month, interest is charged on the remaining balance. For example, with a $5,000 balance and 19.99% APR, the monthly rate is about 1.666%, so the first month's interest charge is roughly $83. If you pay only the minimum, most of your payment covers interest and barely reduces the principal.
What is APR?
APR stands for Annual Percentage Rate. It is the yearly interest rate charged on your credit card balance. Credit card APRs typically range from about 15% to 30%, with the average around 20–22% in the US. Unlike some loans, credit cards usually compound interest daily (though the monthly approximation used here gives very similar results).
How can I pay off my credit card faster?
The most effective strategies are: (1) Pay more than the minimum — even doubling your payment can cut years off your timeline and save hundreds in interest. (2) Stop adding new charges while paying off. (3) Consider a 0% balance transfer card to pause interest for a promotional period. (4) Use the avalanche method — pay off the highest-rate card first, then roll those payments to the next card.