Calculated using standard mathematical and industry formulas.
Eliminating credit card debt requires paying more than the minimum monthly balance to stop high APR interest charges (18%–28%). A $5,000 balance at 20% APR paid at $150/month takes 46 months to clear and incurs $2,116 in total interest fees.
How to use this calculator?
Enter your current credit card balance.
Enter the annual percentage rate (APR) from your credit card statement.
Choose whether you want to specify a fixed monthly payment or a desired payoff time.
Enter either the monthly payment amount or the number of months you want to take to pay off the balance.
See how long it will take to pay off your debt and how much interest you'll pay.
Use Share to send a link with your exact values.
Formula & calculation method
How credit card payoff is calculated
Payoff Months n = -log(1 - (r × Balance) / Monthly Payment) / log(1 + r); where r = Monthly rate (APR / 12), Monthly Payment > (Balance × r)
n = -log(1 - r*B/P) / log(1 + r) where n = number of months, r = monthly interest rate (APR/12/100), B = balance, P = monthly payment
Step-by-step calculation example
For a $5,000 balance at 18.9% APR with $200/month payments: monthly rate = 1.575%, it will take 32 months to pay off with $1,338 in interest.
Key insights to remember
Minimum payments (typically 1-3% of balance) will keep you in debt for years and cost you thousands in interest.
Every extra $10 per month can save you hundreds in interest and shorten your payoff time significantly.
The higher your APR, the more important it is to pay more than the minimum.
Consider transferring your balance to a 0% APR card if you can pay it off during the promotional period.
Paying off credit card debt is often one of the best 'investments' you can make, equivalent to earning a guaranteed return equal to your APR.
How to interpret your results?
The Minimum Payment Trap
Minimum payments are structured to service interest fees first. Doubling your monthly contribution can cut repayment time by 75% and save thousands in finance charges.
Expert advice & guidance
💡 Debt relief tip: If juggling multiple high-interest cards (18%–24% APR), consolidating balances with a low-rate personal loan or 0% APR balance transfer card can accelerate debt freedom dramatically.
Frequently asked questions
How many credit cards should I have?
Having 2 to 4 credit cards is optimal for most consumers to maintain low credit utilization, maximize rewards, and build a strong credit history without overcomplicating finances.
Can you pay a credit card with another credit card?
You cannot directly pay a credit card bill with another card, but you can transfer balances to a 0% APR balance transfer credit card or take a cash advance (with high fees).
What is the difference between debt avalanche and debt snowball?
Debt avalanche pays off highest interest rate cards first (saves most money); debt snowball pays smallest balance cards first (provides quick psychological wins).
How does credit card interest (APR) compound?
Credit card APR compounds daily based on Average Daily Balance: Daily Rate = APR / 365. Paying balances in full before the grace period avoids all interest charges.
Related calculators
Loan Calculator: Monthly Payment & Interest — Calculate monthly personal loan payments, total interest cost, and payoff schedule with our loan calculator. Compare different APR interest rates and terms.
Percentage Calculator: 3-Way Percent Change — Free online percentage calculator: calculate percentage of a number, percentage increase or decrease, discount prices, and relative change between values.