Credit Card Payoff Calculator

It depends on your balance, APR, and monthly payment. With a $5,000 balance at 22% APR, paying $200/month takes about 31 months. Paying only the minimum could take over 20 years. Use this calculator to get your personalized timeline.

In the early months, the majority of your payment goes to interest. For example, on a $5,000 balance at 22% APR, the first month's interest is about $91.67. If you pay $200, only $108.33 actually reduces your balance. As your balance decreases, more of each payment goes to principal.

Minimum payments are designed to keep your account current, not to pay off debt efficiently. They're typically 1–3% of your balance, which barely covers interest. As your balance drops, the minimum drops too — so you pay less and less each month, stretching payoff over decades. A $5,000 balance at 24.99% APR with 2% minimums takes over 30 years and costs more than $12,000 in interest.

A balance transfer to a 0% intro APR card can save you hundreds or thousands of dollars in interest, but only if you can pay off most of the balance during the intro period (typically 12–21 months). You'll pay a transfer fee of 3–5%, which is added to your balance. This calculator compares both scenarios so you can see the exact savings.

The debt avalanche (highest APR first) saves the most money mathematically. The debt snowball (smallest balance first) provides faster psychological wins. Research shows that the snowball method has higher completion rates because the quick wins keep people motivated. Choose the method you'll stick with — the best strategy is the one you actually follow.

Most issuers use the Average Daily Balance method. Your APR is divided by 365 to get a daily rate. Each day, that rate is multiplied by your balance. These daily charges are summed at the end of the billing cycle. This means interest compounds daily — you're charged interest on previously accrued interest — which is why credit card debt grows faster than most people expect.

Any amount above the minimum goes directly to reducing your principal balance. Even an extra $25–$50 per month can cut years off your payoff timeline and save significant interest. This calculator lets you compare different payment amounts to see the exact impact.

Yes, and it's worth trying. Studies show that 60–80% of people who call their issuer and ask for a rate reduction receive one. Having a good payment history, long account tenure, and a competing offer from another card strengthens your case. Even a 2–3% reduction can save hundreds of dollars over the life of your balance.