Credit Card Payoff Calculator
Estimate how a fixed monthly payment could reduce a balance, and compare the time and interest with an added monthly amount.
Time and total cost
Interest is estimated at APR ÷ 12 each month before the payment. Real statements may use daily interest and different billing periods.
What the added payment changes
These are estimates with the same starting balance and APR. The baseline uses only your regular payment.
Annual summary
Each row groups up to 12 monthly payments. The last period can be shorter.
| Year / period | Starting balance | Payments | Interest | Principal | Ending balance |
|---|
How the payoff estimate works
The monthly rate in this simplified model is APR divided by 12. Each month, interest is calculated on the current balance. The payment first covers that interest; the rest reduces principal. The calculator repeats until the balance reaches zero and limits the final payment to the amount due.
A payment that does not exceed the first month’s interest cannot reduce the balance under these assumptions, so the calculator asks for a different amount rather than showing an endless payoff. It also stops estimates that would take more than 100 years.
Why an extra payment can matter
Reducing principal sooner leaves a smaller balance on which the next month’s interest is calculated. The comparison reruns the same model with only the regular payment, then shows the change in months and total interest. If that regular payment cannot pay down the balance, the baseline is marked unavailable while the combined-payment result remains visible.
Worked hypothetical example
For illustration, enter a $5,000 balance, 20% APR, a $200 regular monthly payment, and an additional $50 monthly payment. The combined payment is $250. The first month’s simplified interest is about $83.33, so roughly $166.67 of the first payment reduces principal. Use the example button to compare that path with $200 per month alone. These amounts are examples, not suggested payments.
What this estimate leaves out
Card issuers often calculate interest from daily balances, while this worksheet uses one monthly rate and one payment per month. Variable or promotional APRs, fees, grace periods, new purchases, different payment dates, and minimum-payment rules can change a real statement. This tool is educational and is not individualized financial advice. Read how credit card interest works for more context.