Result
- Total interest paid$2,000.56
- Total paid$7,000.56
- Starting balance$5,000.00
- Effective monthly cost (interest)$55.57
How to use this calculator
- Enter the current balance on the card.
- Type the card's purchase APR (look on your statement).
- Set what you can afford each month; results refresh instantly.
- Try doubling the payment to see the dramatic time and interest savings.
About this tool
Credit card debt is among the most expensive consumer debt — APRs of 20–28% are common. This calculator shows the brutal math: how long it takes to clear a balance at a fixed monthly payment and how much you give up in interest. Try lowering the payment to see when the math breaks (your payment can't even cover the interest, so the balance grows forever). Then nudge the payment up — even an extra $50/month often shaves years off and saves thousands.
How it works — the formula
Monthly interest = (avg daily balance) × APR / 365 × days in cycle
Min payment = max( floor, %·balance + month's interest + past-due )US credit-card interest accrues using the average daily balance method (most common), assessed at the daily periodic rate (APR ÷ 365). Minimum payment formulas vary by issuer but are constrained by the CARD Act (2009) to cover at least the period's finance charges plus a small principal slice — typically 1–2% of balance — with a fixed dollar floor (often $25).
Worked examples
- Inputs:
- balance = $5,000, APR = 22%, min = max($25, 2% + interest)
- Output:
- ~22 years to clear; ~$5,400 of interest paid
- Inputs:
- balance = $5,000, APR = 22%, fixed $200/month
- Output:
- ~33 months to clear; ~$1,536 of interest paid
- Inputs:
- balance = $5,000, transfer fee = $150
- Output:
- Cleared in 18 months at $286/month; $150 fee total — ~$5,250 paid vs $10,400 on the original card
Limitations
- Issuer-specific minimum-payment rules vary; this is an average-daily-balance approximation.
- Promotional 0% APR offers can trigger deferred-interest clauses that retroactively charge full interest if any balance remains at the end.
- Cash advances and balance transfers usually accrue interest from day one (no grace period) at higher APRs.
- Late or missed payments can trigger penalty APRs of 29.99% or higher under most cardholder agreements.
Credit-card payoff math is sensitive to issuer-specific terms. This calculator does not provide financial or credit-counseling advice — for free help, contact an NFCC-affiliated nonprofit credit counselor.