How paying off a card works
Each month the lender adds interest to your balance, then your payment reduces it. When your payment is much larger than the interest, the balance falls quickly. When it is only slightly larger, most of it goes to interest.
This is why the same balance can take two years or ten, depending on the payment. Use the payoff-time option to find the payment that fits a date you want to be debt-free by.
A worked example
Take a 5,000 balance at 22% APR. Paying 200 a month, the first month adds about 91.67 in interest, so only about 108 reduces the balance. It takes 34 months to clear it and the total interest is about 1,750.
Raising the payment to 259.40 clears the same debt in exactly 24 months with about 1,225 in interest, saving roughly 525 and ten months. Small increases early in repayment have a big effect.
Ways to pay off faster
Pay more than the minimum, pay as soon as you can after payday, and avoid new purchases on the card. If you have several cards, many people clear the highest-rate card first to reduce total interest, or the smallest balance first for momentum.
Moving a balance to a lower-rate loan or transfer offer can help, but check fees and how long the offer lasts before relying on it.
Limits of this estimate
Your statement is the final word. Daily interest, grace periods, minimum payment rules and fees all vary by issuer and country. This tool is for planning and is not financial advice.
Questions people ask
How is credit card interest calculated?
Issuers usually charge interest daily on your balance, based on your APR. This calculator uses a simpler monthly version, APR ÷ 12 on the balance each month, which is close for planning but may differ slightly from your statement.
How long will it take to pay off my card?
It depends on the balance, rate and payment. A 5,000 balance at 22% APR takes 34 months at 200 a month and costs about 1,750 in interest. Paying 259.40 clears it in 24 months for about 1,225 in interest.
Why does paying only the minimum take so long?
Minimum payments are often a small share of the balance, so most of each payment goes to interest and the balance falls slowly. Paying more than the minimum each month cuts both the time and the interest.
What if my payment is too low?
If your payment does not exceed the monthly interest, the balance never goes down. The calculator tells you the minimum you need to make progress.
Does this include new purchases or fees?
No. It assumes you stop using the card and the rate stays the same. New spending, late fees and promotional rate changes will lengthen the time.