Credit Card Payoff Calculator
Loans & DebtHow long your balance takes to clear, what the minimum payment really costs, and the payment that hits your target date.
2 years 1 month
At €150.00 per month
€680
€3,680
On a €3,000 balance
14 years 8 months
€3,983 in interest
Paying only the minimum takes 14 years 8 months and costs €3,983 in interest, €3,304 more than your plan.
Balance over time
- Your plan
- Minimum payment
Line chart of the remaining card balance month by month, comparing your payment plan against the minimum payment path, which falls far more slowly.
Repayment schedule
| Year | Interest | Principal | Total payment | Balance |
|---|---|---|---|---|
| Year 1 | €483.65 | €1,316.35 | €1,800.00 | €1,683.65 |
| Year 2 | €194.86 | €1,605.14 | €1,800.00 | €78.51 |
| Year 3 | €1.31 | €78.51 | €79.82 | €0.00 |
How this calculator works
This calculator answers the two questions a card balance raises. Given the payment you can afford, it computes how many months the balance takes to clear and what the interest costs, using the standard annuity formula on your APR divided by twelve. Given a target date instead, it inverts the same formula and returns the fixed monthly payment that gets you there. Card issuers typically compound interest daily rather than monthly, so the real payoff runs very slightly longer than this model; the difference is small and the monthly view is the standard planning convention.
Both answers are shown against the cautionary baseline: paying only the issuer's minimum. The default rule is 1% of the balance plus the month's interest, with a small floor, the formula behind the regulatory disclosure boxes that warn how long minimum payments take. The trap is mechanical rather than mysterious: because the minimum shrinks as the balance shrinks, the payment falls just as fast as the debt, and a balance that a fixed payment would clear in two years can take well over a decade. The chart shows both trajectories, and the callout above it prices the difference. Minimum payment formulas differ by issuer and country, so copy the percentage and floor from your own statement into the advanced options.
The model covers the balance you have today: it assumes no new purchases go on the card and no fees are added while you repay, and it warns you explicitly if the payment you enter does not even cover the monthly interest, because in that case the balance never falls at all. Use the required payment mode to pick a debt-free date you can defend, then set up that payment as a fixed monthly transfer: a fixed amount, unlike the minimum, does not slow down as the balance drops.
Frequently asked questions
- How is the payoff time calculated?
- From the annuity closed form: n = -ln(1 - r x B / M) / ln(1 + r), where B is the balance, M the fixed monthly payment, and r the monthly rate, your APR divided by twelve. The result is rounded up to whole months, and the final month's payment is only what is still owed. At a 0% rate the formula degrades to the balance divided by the payment. The formula is only valid when the payment exceeds the monthly interest r x B; below that threshold the balance grows instead of shrinking, and the calculator says so rather than showing a number.
- Why does paying only the minimum take so many years?
- Because the minimum payment is a percentage of the balance, it shrinks as the balance shrinks. Early on, most of the minimum goes to interest, and the small principal reduction lowers next month's payment, which keeps the repayment rate crawling. A 3,000 balance at 20% APR takes about two years at a fixed 150 a month, but well over a decade at a 1% plus interest minimum. Regulators in several markets require statements to disclose exactly this, and the disclosure exists because the pattern reliably surprises people.
- Which minimum payment rule should I enter?
- The one on your own statement. Issuers set minimums in different ways: a percentage of the balance plus that month's interest and fees, a flat percentage of the whole balance, or a fixed floor, whichever is greater. This calculator models the common percent-plus-interest form with a floor, and its defaults, 1% plus interest with a small floor, are an illustration rather than your contract. The terms section of your statement or cardholder agreement states the exact rule, and the floor, in one or two sentences.
- Will the result match my card statement exactly?
- Very closely, but not to the cent. The calculator compounds monthly at APR divided by twelve, while most issuers accrue interest daily on the daily balance, which makes the true cost slightly higher. Statements also reflect the timing of your payment within the cycle, grace periods on new purchases, and any fees posted to the account, none of which a planning model can know. Treat the output as an accurate map of the repayment, and expect the last month to differ by a small amount.
- How is the required payment for a target date computed?
- With the standard installment formula on the balance, the monthly rate, and the number of months you chose: M = B x r x (1 + r)^n / ((1 + r)^n - 1). It is the same mathematics as a fixed-rate loan payment, applied to your card balance. At a 0% rate it is simply the balance divided by the months. The resulting payment is fixed, which is the point: unlike the minimum, it does not decay with the balance, so the payoff date holds.
- What does this calculator not include?
- It models the balance you have now, repaid and never added to. New purchases, annual fees, late fees, cash advances at their higher rates, promotional or deferred-interest rates that expire, and balance transfers are all outside the model, and each one moves the real payoff date. It also handles one card at a time; if you carry several balances, run each card separately and put your extra money against the highest APR first, which is the cheapest order of attack.
These calculators are for educational purposes only and are not financial advice. Always consult a qualified financial advisor, mortgage professional, or your bank before making a commitment.
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