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    Credit card payoff calculator

    Enter a balance, the APR from your statement, and either a monthly payment or a number of months. This estimate divides that APR by 12. It is not your issuer's bill, and it leaves out new purchases, fees, and rate changes. A prequalification is not a loan offer.

    This field starts empty. The placeholder is an example, not a rate. Type the APR from your statement.

    What do you want to estimate?

    Enter a balance, the APR from your statement, and a monthly payment or a number of months. Nothing is filled in for you.

    These figures are estimates. They exclude new purchases, fees, and rate changes. Many issuers calculate interest daily on an average daily balance, so a statement can differ from this monthly estimate.

    Credit card interest

    How credit card interest works

    This credit card payoff calculator estimates credit card interest and how long to pay off a credit card when paying off credit card debt, using a balance and APR you enter. A credit card interest rate is the price you pay for borrowing money. The Consumer Financial Protection Bureau says that rate is typically a yearly annual percentage rate, or APR. On most cards, you avoid interest on purchases if you pay the balance in full by the due date.

    A grace period is the time from the end of a billing cycle to the due date. The CFPB says you may not be charged interest then if you pay in full on time. It says most cards offer one on purchases, but they do not have to. If you lose that grace period by not paying in full, the CFPB says interest applies to the unpaid balance and to new purchases from each purchase date.

    Many issuers calculate interest daily on the average daily balance. The CFPB calls that daily charge the daily periodic rate. The CFPB says paying sooner can mean less interest if you have no grace period, that different transactions can have different APRs, and that the statement must show each APR and its balance. The CFPB says amounts you pay above the minimum generally go first to the highest-rate balance.

    This tool does not copy that daily math. It divides the APR you enter by 12 and applies it to one balance, with no new purchases. Results are estimates. They exclude new purchases, fees, and rate changes.

    Minimum payments

    Why minimum payments take a long time

    The CFPB's CARD Act report says the Credit Card Accountability Responsibility and Disclosure Act of 2009 required statement warnings on the cost of paying only the minimum. The Federal Reserve Board implemented the Act first. That duty later moved to the CFPB.

    Regulation Z section 1026.7 requires this warning, with stated exceptions: "Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance." The rule uses the current balance, assumes only minimum payments, and assumes no new charges. When required, the statement also shows a 36-month payment. The Federal Reserve states the same warning, and its consumer guide describes both the minimum-payment timeline and the three-year payment.

    If the minimum would not amortize the balance, the warning says the issuer estimates you will never pay it off, because the payment is less than the interest charged that month, even with no new charges. This calculator says a payment never pays off the balance when it is at or below the first month of interest in the estimate.

    A CFPB guide says a high balance can take years, even decades, to pay off, because interest is added each month. The National Credit Union Administration says the minimum often does not cut the balance much, because much of it pays interest, and fees or new charges can add to what you owe. The CFPB says missing a minimum can mean a late fee, a penalty APR on new purchases, and harm to your credit history.

    Your statement

    Where to find your APR and balance

    Use your statement, not an advertised rate. The CFPB says it must show each APR and the balance in that category. The NCUA says the summary shows the new balance, payment information shows that balance, the minimum, and the due date, and the interest section lists each rate, balance, and charge. Fees and interest are listed separately. The NCUA says a penalty rate requires at least 45 days' notice.

    More than one debt

    Avalanche and snowball, described side by side

    The CFPB describes two ways to use extra money after you make the payments you already owe.

    The highest interest rate method, sometimes called an avalanche, puts extra money on the highest-rate debt first. The CFPB says that debt costs the most, that this can save money in the long run, and that progress may feel slow if the balance is large.

    The snowball method puts extra money on the smallest debt while you pay at least the minimum on the rest. After it is paid, that money goes to the next smallest debt. The CFPB says you may see progress quickly, and that you may pay more in the long run because the costliest debts wait.

    The FTC says you can call your card issuer yourself, for free, to ask about a lower rate or a payment you can afford.

    A different product

    When a debt consolidation loan may or may not help

    A new loan is separate from paying the card yourself. The CFPB says banks, credit unions, and installment loan lenders may offer a debt consolidation loan that turns several debts into one payment, and the offer might be for a lower interest rate than you pay now. The FTC describes one loan and one monthly payment, such as a personal loan from a bank or finance company, or a second mortgage or home equity line of credit.

    A lower payment is not a lower total cost. The CFPB says many low rates are teaser rates that can rise later, and a lower payment may come from a longer term, so with fees you might pay more than you do now. The FTC says most of these loans have costs, including interest and sometimes points. One point equals one percent of the amount borrowed. This page does not state a rate, a fee, or approval odds.

    The CFPB says consolidation probably will not help if you keep spending more than you earn, unless you spend less or earn more. If debt problems have affected your credit score, the CFPB says you probably will not get a low interest rate on a balance transfer, consolidation loan, or home equity loan. If the loan is secured by your home, the FTC says you could lose the home when you cannot pay or you pay late, and the CFPB says not repaying a home equity loan can end in foreclosure.

    Some ads are debt settlement. The CFPB says those companies often charge up-front fees and may tell you to stop paying creditors. Read debt relief vs debt consolidation, is debt consolidation a good idea, and personal loan vs debt consolidation loan.

    Start prequalification to see whether an option may be available. Prequalification uses a soft credit inquiry and does not impact your credit score. It is not a loan approval. If you choose to continue with a full application, a hard credit inquiry may be required and could impact your credit score. The CFPB says soft inquiries do not affect credit scores, and that hard inquiries will impact your credit score. Prequalification is not a loan approval or commitment to lend. Loan amounts, rates, terms, and availability are subject to verification, underwriting, lender approval, and applicable law.

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    FAQ

    Common questions

    It is an estimate based only on the balance, APR, and payment or months you enter. The monthly rate in the estimate is that APR divided by 12. Interest in the estimate is rounded to the nearest cent each month. The Consumer Financial Protection Bureau says many credit card companies instead calculate the interest you owe daily, based on your average daily account balance. The interest charged daily is called the daily periodic rate. This estimate also leaves out new purchases, fees, and any later change in the rate. If the payment is less than or equal to the interest the estimate adds in the first month, the result says the payment never pays off the balance.
    Regulation Z, published by the Consumer Financial Protection Bureau, requires this warning on a credit card periodic statement, with stated exceptions: "Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance." Those estimates are based on the current outstanding balance and on the assumption that only minimum payments are made and no other amounts are added. When the minimum payment would not amortize the balance, the statement uses a different warning: the issuer estimates you will never pay off the balance because the payment will be less than the interest charged each month. A CFPB guide says it can take years, even decades, to pay off high balances, because each month interest is added to what you owe. The National Credit Union Administration says paying only the minimum often does not significantly decrease the amount due, because a large portion of the payment goes toward interest rather than principal, and fees or new charges can add to the balance.
    Use your own statement. The Consumer Financial Protection Bureau says the statement must show each category with a different APR and the amount of the balance in that category. The National Credit Union Administration's statement guide says the summary of account activity shows your new balance, payment information shows the total new balance, the minimum payment, and the due date, and the interest charge calculation lists the rates, the balances they apply to, and the interest charged for each type of transaction. The minimum payment warning on that statement is the issuer's estimate. It is not the result from this page. If you see more than one APR, run this calculator once for each balance you want to estimate.
    The Consumer Financial Protection Bureau describes two approaches. The highest interest rate method, sometimes called an avalanche, puts extra money toward the debt with the highest interest rate first, then the next highest. The CFPB says that debt is costing you the most, that this can save you money in the long run, and that progress may not feel fast. The snowball method keeps paying at least the minimum on every debt and puts extra money toward the smallest debt. After that debt is paid, the freed-up money goes to the next smallest debt. The CFPB says you may see progress quickly, and that you may pay more in the long run because you are not focusing on the costliest debts first. Neither method is a loan. This page does not tell you which one to use.
    The Consumer Financial Protection Bureau says banks, credit unions, and installment loan lenders may offer a loan that converts many debts into one payment, and that the offer might be at a lower interest rate than you pay now. A lower monthly payment may exist because you pay over a longer time, and with fees you might pay more overall. The CFPB says many low rates may be teaser rates that last only for a time. It also says a consolidation loan probably will not help if you keep spending more than you earn, unless you reduce spending or increase income. The Federal Trade Commission says most consolidation loans have costs, including interest and sometimes points, with one point equal to one percent of the amount you borrow. Some of those loans use your home as collateral. The FTC says if you cannot make the payments, or payments are late, you could lose your home. A prequalification is not a loan offer.
    This calculator runs on the numbers you type. It does not request a credit report. Prequalification on this site uses a soft credit inquiry and does not impact your credit score. It is not a loan approval. The Consumer Financial Protection Bureau says soft inquiries will not affect your credit scores, and that hard inquiries, which lenders often make after you apply for credit, will impact your credit score. If you choose to continue with a full application, a hard credit inquiry may be required and could impact your credit score.

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