Why minimum payments take so long
Credit card interest is high, and a small payment barely covers it. When most of your payment goes to interest, the balance falls slowly and the debt can last for years.
This calculator shows the exact effect. Enter your balance, APR and what you pay each month, and you will see the time to pay off and the total interest. Add an extra amount to compare the two plans side by side.
How to use this calculator
- Enter your current card balance and the APR from your statement.
- Enter the fixed amount you plan to pay each month.
- Optionally enter an extra monthly amount to see how much time and interest it saves.
- Press Calculate. If your payment is too low to cover the interest, the calculator tells you.
How the calculation works
Each month, interest is added at the APR divided by 12, and then your payment is subtracted. This repeats until the balance reaches zero. Real cards usually calculate interest daily and may use slightly different rules, so your statement can differ a little.
The calculator assumes no new purchases, fees or rate changes. Example: a 5,000 balance at 20% APR with 200 paid monthly takes about 33 months and costs roughly 1,500 in interest. Paying 300 a month cuts that to about 20 months and roughly 900 in interest.
Avalanche or snowball?
- Avalanche: pay the minimum on every card and put extra money toward the card with the highest APR. This saves the most interest.
- Snowball: put extra money toward the smallest balance first. It saves less interest, but quick wins keep many people motivated.
- Either works. The best method is the one you will stick with.
Other ways to pay less interest
- Ask your card issuer for a lower APR, especially if you have a good payment history.
- Consider a balance transfer or a personal loan with a lower rate, but check the fees first.
- Stop adding new spending to the card while you pay it down.
- Set up an automatic payment so you never miss a due date.
Paying off a 5,000 balance at 20% APR
| Monthly payment | Months to pay off | Total interest |
|---|---|---|
| 150 | about 50 | about 2,360 |
| 200 | about 33 | about 1,520 |
| 300 | about 20 | about 910 |
| 500 | about 12 | about 520 |
Frequently Asked Questions
How long will it take to pay off my credit card?
Enter your balance, APR and monthly payment, and the calculator shows the number of months.
Why does it say my payment is too low?
If the payment is smaller than the monthly interest, the balance never falls. Increase the payment.
What does APR mean?
APR is the yearly cost of borrowing on the card, shown as a percentage.
Does it include new purchases?
No. It assumes you stop using the card while paying it off.
How much does an extra payment save?
Enter an extra amount and the calculator shows the interest and months saved.
Is my data stored?
No. The calculation runs in your browser, so the numbers you enter are not sent to our server.