Credit Card Payoff Calculator – How Long to Pay Off Debt

How credit card interest works

Credit card issuers charge interest daily on your average balance, using a daily rate equal to your APR ÷ 365. In practice this is close to applying APR ÷ 12 each month, which is what this calculator does. If you pay your full statement balance by the due date, most cards charge no interest at all thanks to the grace period. Carry a balance, though, and interest is charged on new purchases immediately.

Why minimum payments keep you in debt

Minimum payments are usually about 1%–3% of the balance plus interest, or a small fixed amount. Because the minimum shrinks as the balance shrinks, paying only the minimum can stretch a few thousand dollars of debt over a decade or more and cost more in interest than the original purchases. U.S. card statements must show how long minimum-only payments would take under the CARD Act. The calculator above shows the same comparison.

Strategies to pay off credit card debt faster

Avalanche method: pay minimums on every card and put every extra dollar toward the card with the highest APR. This saves the most interest.
Snowball method: pay off the smallest balance first for quick wins, then roll that payment into the next card. It can keep you motivated.
Balance transfer: move debt to a card with a 0% introductory APR (typically 12–21 months). Watch for a 3%–5% transfer fee and the rate after the promotion ends.
Personal consolidation loan: a fixed-rate loan with a lower APR can replace several card balances with one payment.
Stop new charges on the card you are paying down — enter them above to see how they slow your progress.

Average credit card interest rates

According to the Federal Reserve, the average APR on U.S. credit card accounts that are charged interest has been above 20% in recent years. Store cards and cards for fair credit often charge more. Calling your issuer to ask for a lower rate works more often than people expect, especially if you have a good payment history.

Frequently asked questions

How long will it take to pay off $5,000 on a credit card?

At 22% APR, paying $200 a month takes about 34 months and costs around $1,700 in interest. Paying $400 a month cuts it to about 15 months and roughly $700 in interest.

Does paying more than the minimum help?

Yes — dramatically. Every dollar above the minimum goes to principal, which reduces the interest charged in every following month.

Why does my payment not lower my balance much?

With a high APR, a large part of each payment covers interest. At 24% APR, a $5,000 balance accrues about $100 of interest per month.

Is a balance transfer worth it?

Often, if you can pay off the balance during the 0% period and the transfer fee is lower than the interest you would otherwise pay.

Sources & methodology

This calculator was last reviewed on November 1, 2026. Figures are based on the following official and primary sources:

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