Credit Card Payoff Calculator
How long will minimum payments really take — and how much will it cost you? See the truth, then calculate your way out.
Try a scenario
How to Use This Calculator
Tab "Payoff Timeline"
Enter your current balance, APR, and monthly payment. The calculator shows exactly how many months until you are debt-free, the total interest you will pay, and the true cost of your credit card debt.
Tab "Pay More vs Minimum"
Compare what happens if you pay only the minimum (a percentage of your balance that shrinks over time) versus a fixed monthly amount. See months saved, interest saved, and a side-by-side comparison table. This is the tab that shows why minimum payments are a trap.
Tab "Balance Transfer"
Enter your current card's APR, the transfer promo APR (often 0%), the promo period length, the post-promo APR, and the transfer fee. The calculator compares your total cost on both cards and tells you whether the transfer saves money after accounting for the fee.
The Formulas
Interest = Balance × (APR / 12)
Fixed payment payoff (months):
n = −log(1 − Balance × r / PMT) / log(1 + r)
where r = APR / 12 (as decimal), PMT = monthly payment
Total interest paid:
Total interest = (PMT × n) − Balance
Minimum payment (typical):
Min payment = max(Balance × min%, floor amount)
As balance decreases, payment shrinks — this is why it takes so long
Balance transfer cost:
New balance = Original + (Original × transfer fee %)
Promo interest = New balance × (promo APR / 12) per month
Remaining balance after promo accrues interest at post-promo APR
All formulas use standard credit card amortisation mathematics. No country-specific rules are applied.
Example
$5,000 balance at 22.99% APR
Compare three strategies for the same debt:
The difference between minimum and fixed $200/month: you save over 18 years and $5,850 in interest. Even a modest fixed payment dramatically outperforms minimums because the payment amount does not decrease as the balance drops.
Why Minimum Payments Are a Trap
Credit card minimum payments are designed to keep you in debt as long as possible. Here is why:
The shrinking payment problem
When your minimum is calculated as a percentage of your balance (typically 1–3%), it decreases as you pay down the balance. A $5,000 balance at 2% minimum starts at $100/month. After a year of minimums, your balance might be around $4,600 and your minimum drops to $92. After five years, your balance could still be over $3,500 with a minimum of just $70. Each month, a smaller payment means a larger proportion goes to interest and less to principal.
The interest dominance period
In the early months of minimum-only repayment, most of your payment goes to interest. On a $5,000 balance at 22.99% APR, the first month's interest is about $95.79. If your minimum is $100, only $4.21 reduces the balance. You are essentially renting your debt.
The fix is simple
Pick a fixed amount you can afford — even $50 above the minimum — and pay that same amount every month regardless of what the minimum says. The fixed amount ensures your principal reduction accelerates over time instead of slowing down.
Balance Transfer: When It Makes Sense
A balance transfer moves your debt to a new card with a promotional APR (often 0%) for a limited time. It can save hundreds or thousands in interest — but only under the right conditions.
When a transfer saves money
The transfer is worth it when the interest savings during the promo period exceed the transfer fee. For example: transferring $8,000 from a 22.99% APR card to a 0% card for 15 months with a 3% fee ($240). If you pay $534/month, you clear the entire balance during the promo and pay $240 total cost instead of ~$1,900 in interest on the old card. Net savings: ~$1,660.
When a transfer backfires
If you cannot pay off the balance before the promo ends, the remaining balance starts accruing interest at the post-promo APR (often 21–25%). You also paid the transfer fee upfront. If the post-promo APR is similar to your old card, you end up worse off by the amount of the fee. Only transfer if you have a realistic plan to clear the balance during the promo.
The math to check
Divide your total balance (including transfer fee) by the number of promo months. If that monthly payment is affordable, the transfer is likely worth it. If not, a fixed-payment strategy on your current card may be safer.