How credit card payoff is calculated
Each month the card adds interest: balance × APR ÷ 12. Your payment covers that interest first, and the rest lowers the balance. On $5,000 at 22.99% APR, the first month adds $95.79 of interest, so a $200 payment lowers the balance by $104.21. As the balance falls, interest falls too, and more of each payment goes to the balance.
Example: $5,000 at 22.99% APR
Paying $200 a month clears it in 35 months, with $1,871.10 of interest. Paying $250 takes 26 months and $1,365.55. Paying $300 takes 21 months and $1,081.17. Paying $400 takes 15 months and $771.04. Doubling the payment cuts the interest by more than half.
Why the minimum payment takes so long
Paying a flat $100 a month on the same $5,000 takes 167 months, almost 14 years, and costs $11,694.20 in interest. That is more than twice the original balance. A real minimum payment usually shrinks as the balance shrinks, which can take even longer. Your statement shows how long paying only the minimum would take.
Pick a deadline instead
Choose Payment needed and enter the number of months. The calculator finds the smallest monthly payment that clears the balance in time. Paying off $5,000 at 22.99% APR in 36 months takes $193.53 a month. Your statement shows a similar 36-month figure, worked out by your card issuer.
If the payment does not cover the interest
When the monthly interest is larger than the payment, the balance never goes down. The calculator tells you the first month's interest so you know the least you need to pay just to make progress. If that amount does not fit your budget, look at your other bills and talk to your card issuer about hardship options.
Paying off more than one card
Keep paying the minimum on every card, then put anything extra on one card. Paying the highest APR first saves the most interest. Paying the smallest balance first clears a card sooner, which some people find easier to stick with. Run each card through this calculator to see what the extra payment does.
Frequently asked questions
How long will it take to pay off my credit card?
It depends on the balance, the APR and what you pay each month. Enter all three above. At 22.99% APR, a $5,000 balance takes 35 months at $200 a month and 15 months at $400 a month, with no new purchases.
How much do I need to pay to clear a card in three years?
Choose Payment needed and enter 36 months. For $5,000 at 22.99% APR, it is $193.53 a month.
Why is my statement estimate different from this calculator?
Most card issuers charge interest daily, minimum payments change with the balance, and fees or new purchases add to what you owe. This calculator uses APR ÷ 12 each month with a fixed payment, so expect small differences.
Does the calculator include new purchases?
No. It assumes you stop using the card while you pay it off. New purchases add to the balance and push the payoff date back.
Should I pay off the highest APR or the smallest balance first?
The highest APR first costs the least interest overall. The smallest balance first clears a card sooner. Either way, keep paying every minimum on time.
Can I use this for a 0% balance transfer?
Yes, for the promotional period. Enter 0% APR and add any transfer fee to the balance. Check when the promotional rate ends and what rate applies after that.
Are my numbers saved?
No. Your inputs stay in this page. They are not sent to Oaktally, stored in your browser or added to the URL.
Further reading
CFPB: The payoff box on your credit card statement ↗CFPB: Understanding minimum payments ↗Educational examples, not individual financial advice.