Credit Card Payoff Calculator

The short answer

• A $6,000 balance at 22% charges about $110 of interest in the first month.
• Paying only a typical minimum (1% of the balance plus interest, at least $25) takes 20 years 9 months and costs $9,933 in interest.
• Paying a fixed $300 a month clears it in 26 months for $1,543 of interest.
• A 0% balance transfer with a 3% fee, paid at $300 a month, costs about $207 in fee and interest.

How card interest is charged

Your card’s APR is a yearly rate. Most issuers divide it by 365 to get a daily rate, apply it to your balance each day and add the interest to your account once a month. Because interest is added to the balance, next month you pay interest on it too.

A $6,000 balance at 22% costs about $110 a month in interest (6,000 × 22% ÷ 12). The calculator uses the monthly rate, which is within a few cents of the daily method. Cards often have several APRs: one for purchases, one for cash advances and one for balance transfers, plus a higher penalty APR if you pay late.

The Federal Reserve’s G.19 survey put the average rate on cards that were charged interest at about 22% in August 2026, and about 21% across all accounts. Store cards and cards for people rebuilding credit often charge 28% or more.

How the minimum payment works

Each issuer sets its own formula, shown in the card agreement. A common one is 1% of the balance plus that month’s interest and fees, or a floor such as $25 or $35, whichever is more. Others use 2% plus interest. Because the minimum is a share of the balance, it falls as the balance falls, which is why paying only the minimum takes so long.

On $6,000 at 22%, the first minimum under the 1% formula is $170: $60 of principal and $110 of interest. Change the share and the floor under More options to match your card.

The cost of paying the minimum

Paying only the minimum, the $6,000 costs more in interest than the original balance. The fix is simple: keep paying the amount of your first minimum, or more, even as the minimum falls.

Paying a fixed amount

Each extra dollar goes straight to the balance, so the savings are large at first: going from $150 to $200 a month saves $2,122 and more than two years.

Clearing the card by a date

Choose "Clear it by a set time" to get the payment that clears the card in a set number of months.

A deadline works well with an automatic payment set for the amount, so the plan runs without you having to decide each month.

How much the APR matters

At $300 a month, each four points of APR adds roughly $350 to $470 of interest and one or two months.

What your statement must tell you

Under the federal Credit CARD Act of 2009, your monthly statement must show how long it would take to pay off the balance making only minimum payments, the total you would pay, and the monthly payment that would clear it in three years. Compare those lines with this calculator. The Act also requires that any amount you pay above the minimum goes to the balance with the highest APR first.

The grace period

If you pay the full statement balance by the due date, most cards charge no interest on new purchases. Once you carry a balance, you usually lose that grace period, so new purchases start charging interest straight away. That is why the calculator assumes you stop using the card: putting new spending on a card you are paying down makes the payoff longer and more expensive.

Balance transfers

A balance transfer card moves your debt to a new card with a low or 0% introductory APR, often for 12 to 21 months. You usually pay a fee of 3% to 5% of the amount moved, added to the new balance. Turn on "Compare a balance transfer" under More options.

Paying $343.33 a month instead clears the whole $6,180 before the 0% ends, so you pay only the $180 fee.

Balance transfer catches

• You usually need good credit to qualify, and the limit may be lower than your balance.
• The 0% may apply only to transfers made within the first few weeks.
• New purchases on the transfer card may charge the normal APR.
• A late payment can end the 0% rate early.
• Moving the debt does not help if you run the old card back up.

Debt consolidation loans

A personal loan at a lower fixed rate can replace card debt with one fixed payment and an end date. The Federal Reserve’s survey put the average 24-month personal loan rate at banks at about 11.9% in August 2026, well under typical card rates, though your rate depends on your credit. Check origination fees, and use the loan calculator to compare the total cost with your card plan.

If you have several cards

Pay the minimum on every card and put every spare dollar on one. The avalanche method targets the highest APR first and saves the most interest; the snowball method targets the smallest balance first for quick wins. The debt payoff calculator compares both for up to six debts.

Asking for a lower rate

Call your issuer and ask for a lower APR, especially if you have paid on time and have offers from other cards. It does not always work, but it costs nothing to ask. Even a few points help: at $300 a month, a cut from 26% to 22% saves about $407.

If you are struggling

If you cannot make the minimum, contact the issuer before you miss a payment. Many have hardship programs that lower the rate or the payment for a time. A nonprofit credit counseling agency can set up a debt management plan, which often brings lower rates. Be wary of debt settlement companies that charge upfront fees: the FTC warns that this is not allowed for companies that sell by phone.

Paying down cards and your credit score

Credit utilization, your card balances as a share of your limits, is a major part of credit scores. Paying balances down usually lifts your score, and many people aim to keep utilization under about 30%, and lower still for the best scores. Closing a paid-off card can raise utilization by removing its limit, so think before closing old cards with no annual fee.

Finding the money to pay more

List your take-home pay and fixed bills, then cut back on spending categories for a few months and send the difference to the card. Tax refunds, raises and bonuses work well as lump-sum payments. The paycheck calculator shows your take-home pay if you want to adjust your W-4 withholding instead of waiting for a refund.

After the card is clear

Keep paying the same amount, but into savings. An emergency fund of a few months of expenses stops the next car repair or medical bill going on the card. Then pay the full statement balance each month so the grace period means you never pay card interest again. The savings goal calculator shows how fast the fund builds.

Common mistakes

• Paying the minimum and letting the payment fall as the balance falls.
• Using the card while paying it off.
• Taking a balance transfer and not clearing it before the 0% ends.
• Missing a payment: late fees and a penalty APR make everything slower.
• Taking cash advances, which charge a fee and interest from day one.

Using a lump sum

A tax refund or bonus sent straight to the card has a big effect because it stops interest from day one. Paying $1,000 off the$6,000 balance and then $300 a month clears the card in 21 months with $1,022 of interest, five months sooner than $300 a month alone and $521 cheaper. Raising the regular payment from $300 to $350 instead clears it in 21 months with $1,269 of interest.

Enter your balance after the lump sum in the calculator to see the new payoff date.

Paying more than once a month

Because most cards charge interest on your average daily balance, paying half your amount every two weeks, or paying as soon as you are paid, lowers the average balance and trims the interest a little. It also helps you avoid late payments. What matters most, though, is the total you pay each month, not how you split it.

Penalty APRs and cash advances

Paying more than 60 days late can trigger a penalty APR, often around 29.99%. On $6,000 at $300 a month, a 29.99% rate means 29 months and $2,420 of interest, against 26 months and $1,543 at 22%. By law, the issuer must restore your old rate on existing balances after six months of on-time payments.

Cash advances usually carry a higher APR than purchases, an upfront fee and no grace period, so interest starts the day you take the cash. Avoid them while you are paying down a balance.

When the transfer fee is higher

Some cards charge 5% and give a shorter 0% period. Moving $6,000 to a card with a 5% fee and 12 months at 0%, then 22%, and paying $300 a month: the fee is $300, $2,700 is left when the 0% ends, and you pay $278 of interest after that, clearing the card in 22 months. That still beats $1,543 of interest on the old card, but by less. The longer the 0% period and the more you can pay each month, the better a transfer works.

A step-by-step payoff plan

1. Find your balance, APR and minimum payment on your latest statement.
2. Decide a monthly amount you can keep up, and try it in the calculator.
3. Set up an automatic payment for that amount, a few days after payday.
4. Move the card out of your wallet and phone so it is not used for new spending.
5. Check whether a balance transfer or a lower-rate loan would cut the cost.
6. Send any windfalls straight to the card.
7. Recheck the plan every few months and raise the payment when you can.

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