MayoCalc / Finance

Credit Card Payoff Calculator

See the true cost of your credit card debt and how to escape the minimum payment trap.

Last updated April 2026
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Disclaimer: This calculator is for general educational and informational purposes only. It does not constitute financial advice, investment advice, tax advice, or legal advice and is not a substitute for consultation with a qualified professional. No fiduciary or advisory relationship is created by your use of this tool. Results are estimates based on the inputs you provide, standard mathematical formulas, and publicly available data that may not be current and may not reflect your individual financial situation, applicable tax laws, or other relevant factors. Neither MayoCalc nor Cook Media Systems assumes any liability for losses, damages, or other consequences arising from the use of any information or results provided by this tool. Always consult a qualified financial advisor, certified public accountant, or attorney before making financial decisions. See our full Disclaimer and Terms of Service.

How Credit Card Interest Works

Credit card interest is calculated daily on your outstanding balance using your Annual Percentage Rate (APR) divided by 365. If your APR is 22% and your balance is $5,000, the daily interest charge is $5,000 x (0.22/365) = $3.01. That is $91 per month in interest alone. Because interest compounds on the balance (including previously accrued interest), credit card debt can grow rapidly if you make only minimum payments.

How to Use This Calculator

Enter your current balance, APR, and either your monthly payment amount or the number of months you want to pay off the debt. The calculator shows your payoff timeline, total interest paid, and a month-by-month breakdown. You can compare different payment strategies to see how increasing your monthly payment by even $50-100 dramatically shortens payoff time and reduces total interest.

The Minimum Payment Trap

Credit card minimum payments are typically 1-3% of your balance or a flat minimum (like $25), whichever is greater. On a $10,000 balance at 22% APR, a 2% minimum payment ($200 initially, declining as the balance drops) takes over 30 years to pay off and costs over $17,000 in interest. The same debt paid at a fixed $300/month takes 4 years and costs $4,400 in interest. The difference is $12,600. This is why fixed payments well above the minimum are critical.

Payoff Strategies

Avalanche method: Pay minimums on all cards, then put extra money toward the highest-rate card first. This minimizes total interest. Snowball method: Pay minimums on all cards, then put extra money toward the smallest balance first. This creates quick wins that build momentum. Both methods work; the avalanche saves more money, but the snowball has better psychological adherence rates. Read our full guide on paying off credit card debt.

Credit Card Calculator FAQ

How much should I pay above the minimum?
As much as you can afford after covering essentials and a small emergency fund contribution. Even doubling the minimum payment cuts payoff time roughly in half. A good rule of thumb: commit to a fixed payment amount and maintain it even as the minimum drops. Your balance will shrink much faster with consistent payments than declining minimums.
Should I use savings to pay off credit card debt?
If your credit card charges 22% and your savings earns 5%, you are losing 17% net on every dollar kept in savings instead of applied to the debt. Keep a small emergency buffer ($1,000-2,000), then throw everything else at the debt. Once the debt is gone, rebuild your full emergency fund. The math overwhelmingly favors paying off high-interest debt first.
Does closing a paid-off card help or hurt my score?
Closing a card reduces your total available credit, which increases your credit utilization ratio and can lower your score. It also eventually reduces your average account age. In most cases, it is better to keep the card open with a zero balance (perhaps making one small purchase per quarter to keep it active) rather than closing it.

The True Cost of Minimum Payments

Credit card issuers typically set minimum payments at 1-3% of the balance or a flat minimum (often $25-$35), whichever is greater. At these minimum rates, a $5,000 balance at 22% APR takes over 20 years to pay off and costs more than $7,000 in interest alone, meaning you pay more than double the original balance. The Credit CARD Act of 2009 requires issuers to show on your statement how long payoff takes at the minimum payment versus a fixed higher amount, providing built-in motivation to pay more. Even adding $50 above the minimum payment dramatically accelerates payoff and reduces total interest.

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The Math Behind Minimum Payments

Credit card minimum payments are designed to keep you in debt as long as possible. On a $5,000 balance at 22% APR, paying only the minimum takes over 20 years to pay off and costs more than $7,000 in interest. Paying $200/month instead clears it in 2.5 years and costs about $1,400 in interest. That's a $5,600 difference.

This calculator shows you the payoff timeline and total interest for any payment amount, so you can see exactly what each extra dollar saves you. If you have multiple cards, the avalanche method (highest rate first) saves the most money. For a complete payoff strategy, see our guide on what counts as a good credit score and our guide on paying off credit card debt.