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Online Credit Card Payoff Calculator
Use this online credit card payoff calculator to estimate how many months it will take to pay off your credit card balance and the total interest paid based on your fixed monthly payments and APR.
Result
| Payment Amount ($) | 300.00 |
|---|---|
| Payback Time (Months, Years) | 3Y, 11M |
| Total Interest ($) | 3,967.21 |
Principal
Interest
1 m
5 m
10 m
15 m
20 m
25 m
30 m
35 m
40 m
45 m
47 m
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What Is This Tool?
This calculator helps users determine the time required to pay off a credit card balance along with the total interest paid, by applying fixed monthly payments over time with a given annual percentage rate (APR). It provides an iterative, month-by-month calculation based on the balance growth due to interest and deductions due to payments.
How to Use This Tool?
- Enter your current credit card balance as B_prev
- Provide the annual percentage rate (APR) to calculate the monthly interest rate r (APR ÷ 12)
- Input your fixed monthly payment amount P
- Click the calculate button to see how many months it will take to pay off your balance
- Review the estimated total interest paid and month-by-month balance progression
Key Features
- Uses an iterative monthly amortization approach for precise payoff timing
- Calculates total interest paid over the payoff period
- Accepts user inputs for balance, APR, and monthly payment
- Shows updated remaining balance after each month
- Browser-based and easy to use
Examples
- With a balance of $3,000, APR of 18% (r = 0.015), and a monthly payment of $150, the calculator estimates payoff in approximately 23 months and total interest around $390.
- For a balance of $5,000 with an APR of 12% and monthly payment of $200, the calculator will show the month when balance reaches zero.
- Changing the payment amount allows you to compare how different monthly payments impact payoff duration and interest.
Common Use Cases
- Credit card holders planning debt repayment strategies
- Debt counselors advising clients on payment plans
- Financial planners assessing credit card payoff scenarios
- Individuals wanting to estimate interest savings through fixed payments
Tips & Best Practices
- Ensure your monthly payment is sufficient to cover interest to actually reduce the balance
- Use consistent and accurate APR values for reliable results
- Avoid entering new charges or fees during calculation since the model assumes fixed payments and constant APR
- Review monthly payoff projections to understand your progress clearly
- Regularly update your inputs if your payment or APR changes to keep calculations accurate
Limitations
- Assumes a fixed monthly payment amount throughout the period
- Monthly interest rate is constant, derived from a fixed APR; variable interest rates are not accounted for
- Does not include effects of new purchases, additional fees or penalties
- Estimates payoff only under the assumptions of no balance increases except interest and fixed payments
Frequently Asked Questions
- How is the remaining balance calculated each month?
- The remaining balance is calculated by adding interest accrued on the previous balance (B_prev × r) and then subtracting the fixed monthly payment (P) using the formula: B_new = B_prev + B_prev × r - P.
- What does the monthly interest rate (r) represent?
- The monthly interest rate r is the annual percentage rate (APR) divided by 12, representing the interest applied to your balance each month.
- Can this calculator handle variable interest rates or fees?
- No, this tool assumes a constant APR and fixed monthly payments. It does not factor in fees, new purchases, or changing interest rates.
Key Terminology
- B_prev
- The credit card balance at the start of each month before interest and payment are applied.
- r
- The monthly interest rate calculated by dividing the APR by 12.
- P
- The fixed monthly payment amount made towards the credit card balance.
- B_new
- The updated balance remaining after monthly interest is added and the payment is subtracted.