Credit Card Calculator
This calculator helps find the time it will take to pay off a balance or the amount necessary to pay it off within a certain time frame. To evaluate the repayment of multiple credit cards, please use our credit card payoff calculator.
Credit Card Details
Payoff Strategy
Calculate how long it takes to pay off
Calculate required monthly payment
Result:
It will take 5 years and 2 months to payoff the balance. The total interest is $4,308.61.
Principal vs Interest
Balance Over Time
📊 Payment Breakdown:
Monthly Payment
$200.00
Total Payments
$14,308.61
Principal
$8,000.00
Interest
$4,308.61
Your Input
Frequently Asked Questions
Credit card interest is typically calculated monthly using the Average Daily Balance method:
Example: $8,000 balance at 18% APR:
Payoff time depends on three factors:
- Balance: Larger balances take longer (at same payment)
- Interest Rate: Higher APR means more interest accrues monthly
- Payment Amount: Higher payments reduce balance faster
- $200/month payment = 62 months (5+ years)
- $400/month payment = 22 months (1.8 years)
- $600/month payment = 15 months (1.25 years)
Minimum payments vary by card issuer but typically include:
Why minimums are problematic:
- Most goes to interest, not principal
- Takes 20-30 years to pay off
- Costs thousands in extra interest
- Keeps you in debt far longer
Always pay more than minimum if possible!
Total interest depends on how long you carry the balance:
Total Payments: $12,308.61
Total Interest: $4,308.61
(That's 54% of original balance!)
How to reduce interest:
- Pay more than minimum monthly
- Lower your interest rate (call issuer)
- Balance transfer to 0% APR card
- Pay off entire balance monthly
APR stands for Annual Percentage Rate—the yearly interest rate on your credit card balance.
Key points about APR:
- Expressed as annual rate even though interest is charged monthly
- Varies by card type (cash back, rewards, secured, etc.)
- Usually 15% - 25% for most consumers
- Can be negotiated lower with good credit
- Promotional 0% APR periods possible
- Average APR: ~21%
- Excellent credit: 12-17%
- Fair credit: 18-24%
- Poor credit: 24-29%+
A balance transfer moves your debt to a different card, often with a lower or 0% promotional APR.
How it works:
- Apply for new card offering 0% APR promotion
- Request balance transfer of your existing debt
- Pay 3-5% balance transfer fee (usually)
- 0% APR period is temporary (6-21 months typically)
- After promotion, regular APR applies
Benefits: Save thousands in interest during 0% period if you pay aggressively.
Drawback: Balance transfer fees and temptation to spend more.
No—paying off debt improves your credit!
Benefits of paying off:
- Lowers credit utilization ratio (major factor)
- Shows responsible payment history
- Improves credit score over time
- Increases available credit
Credit utilization impact:
- Using 30% of limit = good
- Using 50% of limit = acceptable
- Using 70%+ of limit = hurts score
Strategies to accelerate payoff:
- Increase Payment: Pay $100 more per month = years faster payoff
- Balance Transfer: Move to 0% APR card and pay aggressively
- Lower Rate: Call issuer and negotiate APR reduction
- Consolidation Loan: Personal loan at lower rate to pay off card
- Stop Using Card: Don't add new charges while paying down
- Lump Sum Payments: Apply bonuses, tax refunds, gifts to balance
- Debt Avalanche: If multiple cards, pay highest rate first
That's 2+ years faster and ~$1,700 in interest saved.