Paritian

Finance

Credit Card Payoff Calculator

Months to clear a credit card balance at a fixed monthly payment, and the interest it costs.

Results

Months 24.5
Years 2.04
Total paid 3675.08
Total interest 675.08
Interest this month 49.75

What this tool does

Card interest compounds monthly on whatever is left, so the difference between paying the minimum and paying a little more is measured in years and in a large multiple of the interest. Raising the payment by a small amount usually shortens the term far more than people expect.

Formula

n = −ln(1 − balance × i ÷ payment) ÷ ln(1 + i)

Variables

SymbolMeaningUnit
bOutstanding balance
arAnnual interest rate%
pmMonthly payment
NMonths
YYears
TPTotal paid
INTotal interest
MIInterest this month

Worked example

  • Outstanding balance3000
  • Annual interest rate19.9 %
  • Monthly payment150
  • Months24.5
  • Years2.04
  • Total paid3675.08
  • Total interest675.08
  • Interest this month49.75

Limitations

  • This is an informational calculator, not personalised financial advice. Rates, fees, taxes and contract conditions vary between institutions and countries.
  • The result is an estimate based only on the values you type. Real situations often include factors this calculator does not know about.
  • The tool works with whatever currency you use for the inputs; it does not convert between currencies.

Frequently asked questions

Why does the result say nothing when I lower the payment?

Because below a certain payment the debt never clears. If your monthly payment is less than the interest charged that month, the balance grows instead of shrinking and there is no answer to give. The last result shows this month's interest — your payment has to exceed it before any of it touches the balance.