Credit Card Calculator
Credit Card Balance & APR
Payoff Results
| Months to Pay Off | — |
|---|---|
| Total Interest Paid | — |
| Total Amount Paid | — |
How to Use This Credit Card Calculator
Minimum payments feel manageable until you realize most of it is interest and the balance barely moves. I run this whenever someone asks how long a card will take to clear—fixed payment vs minimum payment tells two very different stories.
- Enter current balance and APR. Use your statement balance and purchase APR.
- Choose payment method. Fixed monthly payment, or minimum payment as a percent of balance plus a dollar floor.
- Enter payment details. Dollar amount for fixed mode, or minimum percent (e.g. 2%) and floor (e.g. $25) for minimum mode.
- Press Calculate. Review months to pay off, total interest, and total amount paid.
Juggling multiple cards? Compare snowball vs avalanche with the Credit Cards Payoff Calculator, or model mixed debts in the Debt Payoff Calculator.
Credit Card Formulas and Practical Applications
Credit cards compound interest monthly on the remaining balance. Each payment covers accrued interest first; whatever is left reduces principal. At high APRs, minimum payments barely touch the balance for years.
Monthly interest charge
Interest = Balance × (APR ÷ 100 ÷ 12)
A $5,000 balance at 22.99% APR accrues about $96 in interest the first month.
Fixed payment payoff
Principal Reduction = Payment − Interest
Paying $200/month on that balance clears it in about 32 months with roughly $1,350 total interest.
Minimum payment rule
Payment = max(Balance × Min%, Floor)
At 2% minimum with a $25 floor, the payment shrinks as balance falls—stretching payoff to many years and thousands in interest at high APRs.
Frequently Asked Questions
What is the difference between fixed and minimum payment modes?
Fixed mode uses a constant dollar payment each month. Minimum mode calculates payment as a percentage of balance with a dollar floor, so the payment shrinks as the balance falls.
Why does minimum payment take so long to pay off?
Early minimum payments mostly cover interest, especially at high APRs. Principal drops slowly, so payoff can stretch many years.
What minimum payment percentage should I use?
Most issuers charge 1 to 3 percent of the statement balance. Check your card agreement or enter the percentage shown on your statement.
Are fees included in this calculation?
No. Late fees, annual fees, and cash-advance charges are not modeled. Only balance and APR drive the estimate.
How is monthly interest calculated?
Monthly interest equals balance times APR divided by 100 divided by 12. Payment first covers interest, then reduces principal.