Credit Card Payoff Calculator
Enter your balance, APR, and monthly payment to see exactly how long it takes to become debt-free and how much interest you'll pay in total.
The Real Cost of Credit Card Debt
Credit card debt is among the most expensive consumer debt available, with average APRs near 21–24% in 2024. At 24% APR, a $5,000 balance costs $100 per month in interest alone. If you only pay $150/month, just $50 goes toward reducing the balance — meaning it takes over 4 years to pay off and costs nearly $2,400 in interest.
How Monthly Payment Affects Payoff Time
| Monthly Payment | Payoff Time | Total Interest |
|---|---|---|
| $125 (min) | Never pays off | — |
| $150 | ~51 months | ~$2,613 |
| $200 | ~31 months | ~$1,459 |
| $300 | ~19 months | ~$821 |
| $500 | ~11 months | ~$467 |
*Based on a $5,000 balance at 24% APR.
Frequently Asked Questions
Why does paying only the minimum take so long?
Minimum payments are typically set at 1–2% of the balance or a small fixed amount. At high APRs (18–29%), a large portion of each minimum payment goes to interest, leaving very little to reduce the principal. This can stretch a $5,000 balance into 10+ years of payments.
What is APR on a credit card?
APR (Annual Percentage Rate) is the yearly interest rate charged on your balance. Most credit cards charge between 18% and 29% APR. To find your monthly rate, divide the APR by 12. A 24% APR = 2% per month.
How much should I pay each month to pay off faster?
A common target is to pay off the balance within 12–18 months. Divide your balance by 12 to get a rough 1-year payoff payment. For a $5,000 balance, that's about $417/month. Use this calculator to experiment with different amounts and see the impact.
What is the avalanche method for paying off debt?
The debt avalanche method prioritizes paying off the card with the highest APR first while making minimum payments on others. Once the highest-rate card is paid off, you roll that payment to the next highest. This minimizes total interest paid.
What is the snowball method?
The debt snowball method pays off the smallest balance first regardless of interest rate. The psychological wins from eliminating balances keep many people motivated. Once a card is paid off, that payment is redirected to the next smallest balance.