Calculation details
Planning estimate only, not financial, tax, or legal advice. Verify assumptions and current rules before making decisions.
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Use this result
Share the current inputs or ask ChatGPT to explain the calculation in context.
What does this calculator estimate?
$5,000 at 22 percent APR with $200/month payments takes about 34 months and costs roughly $1,750 in interest. The balance grows by APR/12 each month minus the payment.
- Balance each month += balance x APR / 12 - payment.
- If the payment is below the first month's interest, the balance never pays off.
- The average US credit card APR is near 22 percent (Fed).
Why credit card debt is expensive
Credit cards compound interest monthly on the full balance. Minimum payments keep you paying for years because each month's interest eats most of the payment. The calculator makes the true cost visible.
Limitations to watch for
The tool assumes a fixed payment and APR — rates can change, and new purchases add to the balance. It ignores balance transfer promotions. Paying interest daily (as many cards do) makes the real cost slightly higher.
How to use it in practice
Enter the balance, APR, and what you can pay monthly. Compare payment sizes to see how much extra money saves in interest and months. Prioritize high-APR cards first (avalanche) or small balances (snowball).
['Enter the balance and APR.', 'Enter the monthly payment.', 'Read months to payoff and total interest.']
How payoff is calculated
The calculator simulates the balance month by month: each payment covers the interest first, then reduces principal. A $5,000 balance at 22 percent APR with $200 monthly takes about 34 months and about $1,750 in interest. The amortization runs locally so scenarios are private.
The minimum-payment trap
Minimum payments (typically 1–3 percent of balance plus interest) stretch payoff to decades. At a $100 minimum on $5,000 at 22 percent, payoff runs 10+ years with interest nearly matching the original balance. The calculator shows the timeline so the trap is visible.
Paying more changes everything
$200 monthly on $5,000 at 22 percent: about 34 months, $1,750 interest. $300 monthly: about 21 months, $1,100 interest. Each extra $100 saves roughly $650 and a year of payments. The calculator makes the marginal-dollar value explicit.
Balance transfers and consolidation
A 0 percent balance transfer removes interest during the promo, but fees (3–5 percent) and the post-promo APR matter. $5,000 at a 3 percent fee is $150 — cheap if paid off inside the window, expensive if not. The calculator's baseline lets you compare the transfer against the current plan.
A worked example
$8,000 at 19.9 percent with $250 monthly: about 45 months and $3,100 interest. At $400 monthly: about 23 months and $1,400 interest — $1,700 saved. The calculator runs both so the decision to find $150 more monthly is backed by the number it saves.
How this calculator works
Formula
Simulates the balance month by month: balance += balance × APR ÷ 12 − payment. The tool reports months to payoff and total interest. Payment must exceed the first month's interest or it never pays off.
Worked example
$5,000 at 22% APR with $200/month payments takes about 34 months and costs roughly $1,750 in interest.
Assumptions to verify
- No new purchases are added.
- The payment stays constant.
- The APR is fixed.
Frequently asked questions
How long will it take to pay off my card?
The tool simulates the balance monthly: $5,000 at 22% with $200/mo takes about 34 months.
Why is my minimum payment barely helping?
Each month, interest accrues on the balance — if the payment is close to the interest, almost nothing hits principal.
How much interest will I pay?
The tool totals it: about $1,750 on the example above. Paying more monthly cuts it sharply.
What if my payment is less than the interest?
The balance grows forever — the tool flags this.
Should I use the avalanche or snowball method?
Avalanche (highest APR first) saves the most interest; snowball (smallest balance first) builds momentum. Both beat minimum payments.
Does this include new purchases?
No — it assumes you stop adding to the balance. New charges extend payoff.
What about a balance transfer?
Run the balance transfer calculator to compare a 0% promo against your current APR.
Is the minimum payment enough?
Technically yes, practically no — minimums stretch payoff to decades.
Are balance transfers worth it?
Compare the fee and post-promo rate against your current APR and payoff timeline.
Cite this tool
BoringToolsKit. “Credit Card Payoff Calculator.” boringtoolskit.com/credit-card-payoff-calculator/ (reviewed 2026-08-25). Free to reference in articles, syllabi, and answer posts with a link.
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