Credit Card Payoff Calculator

How to use the credit card payoff calculator

1. Enter the Card balance and the Annual interest rate (APR, %) shown on your statement.
2. Choose a Plan: - I pay a fixed amount each month, then enter the Monthly payment, to see how long it will take; - I want it paid off in a number of months, then enter the Months to pay it off, to get the payment you need.
3. Under Minimum payment rule (for the comparison), enter your card’s rule: a Percentage of the balance (%), whether it is Plus the month’s interest, and the Minimum amount. Your cardholder agreement or statement describes it.
4. Choose the Currency.

The results show the Monthly payment, the Time to pay off, the Total interest, the Total paid, the month you are Debt-free by and the Interest in the first month. The section If you only make the minimum payment shows the First minimum payment, how long minimum payments would take, their total interest and the Interest saved with your plan. The chart shows the principal and interest paid each year, and the Payment schedule lists every month for Your plan or for Minimum payments; Download CSV exports it.

If your payment does not cover the first month’s interest, the tool warns you: the balance would never go down.

How it is calculated

The monthly rate is the APR divided by 12: at 19.99%, i = 1.6658% a month. Each month, interest = balance × i (rounded to the cent) is added, then your payment is subtracted. The last payment is only what is left.

The number of months for a fixed payment P is n = −ln(1 − i × B ÷ P) ÷ ln(1 + i), rounded up. The payment to clear a balance B in n months is the usual loan formula P = B × i ÷ (1 − (1 + i)^−n).

The minimum payment is modelled as max(minimum amount, percentage × balance + interest), recalculated each month on the new balance, so it shrinks as the balance falls.

Example with the default values: $5,000 at 19.99% paid off at $200 a month takes 33 months (2 years 9 months) and costs $1,521.01 in interest. Paying only the minimum (1% of the balance plus interest, at least $10) starts at $133.29 but takes 26 years 6 months and costs $7,922.64 in interest: $6,401.63 more. To be debt-free in 24 months, you would need $254.45 a month.

Daily versus monthly interest

Most Canadian and US cards calculate interest daily on the average daily balance, using a daily rate of APR ÷ 365, and compound it monthly. This tool uses APR ÷ 12 each month, a standard simplification: the results are usually within a few dollars of a real statement over a year. Purchases, cash advances (often at a higher rate and with no grace period), annual fees and a promotional rate are not included. Stop using the card while you pay it down, or the schedule will not hold.

Tips to pay it off faster

• Pay more than the minimum, even a little: the extra goes entirely to the principal.
• Pay the highest-rate card first (the avalanche method) to minimize interest.
• A balance transfer or a consolidation loan at a lower rate can help, but compare the transfer fees.
• In Quebec, the minimum payment rate on credit cards has been raised gradually to 5% of the balance for most accounts; check your own agreement.

The results are estimates, not financial advice.