Credit Card Payoff Calculator
See how long to pay off a credit card and total interest. Compare minimum-only vs extra payment and model intro 0% APR transfers.
FINANCESee exactly how long it takes to pay off a credit card and how much interest you pay. Compares paying the minimum vs paying extra, and models intro 0% APR balance-transfer offers.
Credit card APRs compound daily. A 22% APR is roughly 0.06% per day on your average daily balance. Minimum payments (typically 2-3% of balance) are often less than the interest at high APRs, so the balance can grow if you pay only the minimum. A $5,000 balance at 22% with 2% minimum takes about 32 years to pay off; adding $100/month extra cuts payoff to about 4 years and saves over $9,000 in interest.
Credit Card Payoff Calculator
See exactly how long it takes to pay off a credit card and how much interest you pay. Compare paying the minimum vs paying extra. Models intro 0% APR offers and balance transfers.
If You Pay Only the Minimum
How Credit Card Interest Adds Up
Credit card APRs (annual percentage rate) compound daily. A 24% APR breaks down to about 0.066% per day on your average daily balance. On a $5,000 balance, that's about $3.30/day or $100/month in interest. Minimum payments are typically 2-3% of the balance, often less than the interest for high APRs - meaning your balance can actually grow if you pay only the minimum.
The "minimum payment trap" is brutal. A $5,000 balance at 22% APR with 2% minimum payments takes about 32 years to pay off and costs over $11,500 in interest. Paying just $100 extra per month drops payoff to about 4 years and saves you over $9,000 in interest. The math heavily rewards even small extra payments.
Balance transfers can save serious money if you qualify. Many US cards offer 0% APR for 12-21 months on transferred balances, charging a 3-5% transfer fee. Transferring a $5,000 balance with a 3% fee saves money if you pay off the full $5,150 within the intro period. After intro, the rate usually jumps to 20%+ - so have a payoff plan before transferring.
Estimates assume fixed APR and that you make no new charges. Many cards reduce the minimum payment as balance falls, which extends payoff further. Always check your card agreement.