How you repay credit card debt determines whether you escape in months or remain trapped for decades. This calculator shows exactly how payment amounts affect your payoff timeline and total interest costs.
How This Calculator Works
This calculator optimizes your debt payoff strategy:
- Current Balance: Your total credit card debt
- Interest Rate (APR): Your card's annual percentage rate
- Monthly Payment: What you plan to pay each month
- Payoff Timeline: Months until debt-free
- Total Interest: Amount paid beyond original purchases
- Interest Saved: Compared to minimum payments
The Formula Explained
Months to Payoff = -log(1 - (r Ă— B)/(P)) / log(1 + r)
Where:
- B = Balance
- P = Monthly payment
- r = Monthly interest rate (APR Ă· 12)
Higher payments dramatically reduce both the number of payments and total interest.
Step-by-Step Example
$8,000 Credit Card Balance at 19.99% APR
| Monthly Payment | Months to Payoff | Total Interest | Total Paid |
| $160 (2% min) | 226 (18.8 years) | $12,180 | $20,180 |
| $200 | 66 (5.5 years) | $5,116 | $13,116 |
| $300 | 35 (2.9 years) | $2,470 | $10,470 |
| $500 | 18 (1.5 years) | $1,212 | $9,212 |
Paying $300 vs minimum saves $9,710 and 16 years!
Frequently Asked Questions
How much should I pay on my credit card each month?
Ideal: Pay the full statement balance (no interest). If carrying a balance: Pay as much as you can afford—at least 2-3x the minimum. Set a fixed payment that's aggressive but sustainable. Even $20-50 extra monthly saves significant interest and time.
What happens if I only make minimum payments?
Minimum payments are designed to keep you in debt. At 2% minimum on an $8,000 balance, you'll pay for nearly 19 years and spend $12,000+ in interest—more than the original debt! The minimum covers mostly interest, barely touching principal.
How do I calculate my ideal monthly payment?
Work backwards: Set a debt-free date (12-24 months is ambitious but achievable), then calculate the required payment. Our calculator does this for you. Alternatively, determine your maximum sustainable payment, and the calculator shows your timeline.
Should I pay more than my calculated payment if I can?
Yes! Any extra payment goes directly to principal. Getting a tax refund or bonus? Apply it to credit card debt. Each extra dollar today saves multiple dollars in future interest. Debt payoff has guaranteed returns equal to your APR.
Does it matter when during the month I make payments?
Yes—make payments earlier in the billing cycle to reduce your average daily balance. Interest accrues daily on your balance. A mid-cycle payment reduces the balance that accrues interest. Some people split payments bi-weekly for this reason.
Should I close credit cards after paying them off?
Generally, no. Closing cards reduces available credit, hurting your credit utilization ratio. Keep zero-balance cards open (use occasionally for small purchases). Only close cards with annual fees you can't justify. Your credit score benefits from aged, open accounts.
How do I choose between paying one card or spreading payments?
Avalanche method (highest APR first): Saves most money—mathematically optimal. Snowball method (smallest balance first): Provides quick wins for motivation. If you struggle to stay motivated, snowball works better psychologically. Either beats minimum payments everywhere.
What if I can't afford aggressive payments?
If minimum payments strain your budget: (1) Look for 0% balance transfer offers, (2) Negotiate a lower APR with your card issuer, (3) Consider a debt consolidation loan, (4) Explore nonprofit credit counseling. Don't ignore the debt—interest keeps compounding while you wait.
Key Points to Remember
- Pay more than minimum: Even small extra amounts save thousands
- Set a debt-free date: Work backwards to calculate needed payments
- Consistency matters: Set up automatic payments you can sustain
- Extra windfalls to debt: Tax refunds, bonuses go straight to balance
- Don't add to the balance: Stop using the card while paying it off