Credit Card Payoff

Each modeled month adds balance × APR/12 in interest and subtracts a fixed payment. If that payment does not exceed the interest, the balance cannot be paid off under these assumptions.

$6,000 at 22% APR with a fixed $250 monthly payment takes 32 payments, including a smaller final payment, and approximately $1,979.05 interest. A 0% rate with the same payment takes 24 months.

Use a fixed amount you can afford, not a percentage that shrinks with the balance. The payoff schedule assumes you stop adding purchases.

Real cards use daily balances, fees, variable rates and issuer-specific minimums. This tool models one balance and does not compare multiple-card snowball and avalanche strategies.

Use the balance you want to pay down, its annual percentage rate and a fixed monthly payment you can sustain. The extra-payment box adds to that monthly amount in the comparison scenario. If your regular payment is $250 and you enter $50 extra, the second scenario uses $300 a month. Entering $300 in both boxes would model $600, which is probably not the comparison you intended. Keep your statement beside you when entering these figures.

The form handles one balance at a constant APR. It does not accept a list of cards or decide which debt to pay first. A statement with separate purchase, transfer and cash-advance rates cannot be represented exactly by treating the entire balance as one rate. Similarly, a promotional rate that ends partway through repayment needs a more detailed model. Use this tool for a clearly labeled illustration rather than a complete forecast of a complicated card account.

At zero APR, a $1,200 balance paid at $100 a month takes 12 monthly payments. Add $50 each month and the same balance takes eight payments of $150. There is no interest saving in that example; the benefit is four fewer payment periods. This is a useful check on the payment boxes before introducing interest. At a positive APR, paying earlier can also reduce modeled interest because less balance remains to accrue it.

In the interest-bearing model, each month adds interest based on the remaining balance before applying the payment. The last payment can be smaller than the regular amount. Real issuers commonly use daily-balance methods and account-specific posting dates, so the final cents may differ from this monthly model. Do not multiply the number of months by the regular payment and assume that equals the exact total paid. The partial final payment is part of the calculation.

A payment that does not cover the modeled monthly interest will not reduce the balance under these assumptions. That is an arithmetic warning, not a prediction that your issuer will keep the same minimum-payment requirement forever. Check your statement's minimum-payment terms and contact the issuer if your budget cannot support the required amount. Simply raising the number in this calculator does not make the money available; a workable payment plan also has to fit your essential expenses.

The payoff result assumes no new spending, late charges or other fees. Adding purchases while making the same payment can extend repayment, even if the original calculation showed a short timeline. If you use the card for everyday bills, separate those new charges from the old balance you are trying to clear. The comparison is most meaningful when the balance is no longer growing for reasons outside the interest calculation shown here.

The extra-payment saving is the difference between two modeled interest totals, not a guaranteed return on money or a recommendation to drain an emergency fund. It also does not prove that this card should be paid before every other debt. Other accounts may have different rates, penalties or minimum obligations. A multi-debt plan requires those details separately. Keep the result focused on the question the tool actually answers: how this one balance changes with a larger fixed payment.

Before acting on the comparison, check whether the APR can change and whether any transfer offer carries an upfront fee. Neither is included in the single-rate estimate. Record the balance date as well, since yesterday's statement balance may differ from today's account balance after payments or purchases. Reviewing the estimate periodically is more useful than treating one payoff date as fixed. The assumptions should change when the account or your available monthly budget changes.