SnapCalc

Credit Card Payoff Calculator

Find out how long it will take to pay off your credit card and how much interest you will pay.

Embed
$

Your current credit card balance

%

Found on your credit card statement

$

How much you plan to pay each month

How many months you want to be debt-free in

How to Use This Credit Card Payoff Calculator

This calculator has two modes to fit how you think about your debt:

  • Fixed Monthly Payment — enter what you can afford each month and see exactly when you'll be debt-free and how much interest you'll pay in total.
  • Pay Off In X Months — set a target deadline (e.g. 24 months) and find out the monthly payment required to hit it.

    • What You'll Need

  • Current Balance — the amount on your most recent statement
  • APR — your Annual Percentage Rate, found on your statement, in your online account, or on the back of your card
  • Monthly payment or target months — depending on your chosen mode

    • Understanding Your Results

  • Time to Pay Off — months (and years) until your balance reaches zero
  • Total Interest Paid — the real cost of carrying this debt — often a wake-up call on high-APR cards
  • Total Amount Paid — original balance plus all interest combined

    • A Sobering Comparison

    On a $5,000 balance at 22% APR:

  • Paying $100/month: ~8 years to pay off, ~$4,300 in interest
  • Paying $200/month: ~2.5 years to pay off, ~$1,250 in interest
  • Paying $300/month: ~19 months to pay off, ~$780 in interest

    • Doubling your payment more than triples the speed and slashes the interest cost.

    Tips to Pay Off Faster

  • Round up your payment. Even an extra $20–50/month saves hundreds in interest.
  • Stop adding new charges. Every new purchase resets your progress.
  • Consider a balance transfer. Moving to a 0% intro APR card pauses interest for 12–21 months.
  • Use the debt avalanche. If you have multiple cards, focus extra cash on the highest APR card first.

    • Formula

    Months = -log(1 - (r × Balance / Payment)) / log(1 + r) | Required Payment = (r × Balance) / (1 − (1+r)^−n)

    Frequently Asked Questions

    How is credit card interest calculated?

    Credit card interest compounds daily. Your APR is divided by 365 to get a daily rate, which is applied to your average daily balance each month. This is why even a single month of carrying a balance generates meaningful interest charges.

    What happens if I only make minimum payments?

    Minimum payments are typically 2–3% of your balance. On a $5,000 balance at 22% APR, paying only the minimum can take over 20 years and cost more than $6,000 in interest — more than the original debt itself.

    What is a good credit card APR?

    The average credit card APR in Australia is around 20–23%. Anything under 15% is considered low. If your rate is above 20%, a balance transfer to a 0% intro card could save you hundreds while you pay it down.

    Should I pay off credit cards before investing?

    If your APR is above 7–8%, paying off the credit card first is usually the smarter financial move. Eliminating 22% APR debt is equivalent to earning a guaranteed 22% return — better than almost any investment.

    What is the debt avalanche vs debt snowball method?

    The avalanche method targets the highest-APR debt first, minimising total interest paid. The snowball method pays off the smallest balance first for psychological wins and momentum. Avalanche saves more money; snowball is easier to stick to.

    Is this calculator free?

    Yes — 100% free, no signup required. All calculations run instantly in your browser.

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