Credit Card Calculator
Calculate how long it takes to pay off a credit card balance with minimum payments or a fixed monthly payment.
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Credit Card Payoff Strategy
Paying only the minimum extends repayment for years and costs thousands in extra interest. Even paying $50 extra per month above the minimum can save significant money and years of debt. The avalanche method (highest APR first) minimizes total interest.
What is the Credit Card Calculator?
The Credit Card Payoff Calculator reveals the true cost of revolving debt. It determines exactly how many months it will take to pay off your balance and how much total interest you will be charged by the bank.
How It Works (Formula)
Unlike fixed installment loans, credit cards use revolving compound interest based on an Average Daily Balance. If you only make the minimum payment, the vast majority of your money goes toward interest, dragging the payoff out for years or even decades.
$$ N = \frac{-\log(1 - \frac{rB}{P})}{\log(1+r)} $$
Solves for the number of months required to zero a credit balance.
How to Use It
Enter your total credit card balance, the card's APR (interest rate), and the amount you plan to pay each month. The calculator will tell you exactly when you will be debt-free and how much money you lost to interest.