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Credit Card Calculator

Calculate credit card payoff time and interest

Time to Pay Off

3 years 11 months

Total Interest

$1,984

Total Payment

$6,984

Monthly Payment

$150

$
%

Typical range: 15-25%

$

Minimum payment: $100 (2% of balance or $25)

Months to Payoff

47

3 years 11 months

Total Interest

$1,984

Interest paid over life of debt

Total Payment

$6,984

Principal + Interest

Payoff Date

January 2030

Estimated completion date

Frequently Asked Questions

Q

How is credit card interest calculated?

Credit card interest is calculated daily using your APR divided by 365. Example: $5,000 balance at 22% APR = $5,000 × (0.22/365) = $3.01 daily interest. Over 30 days, that's $90+ added to your balance, which then compounds.

  • Daily Periodic Rate (DPR) = APR ÷ 365
  • Daily interest = Balance × DPR
  • Interest compounds daily (interest on interest)
  • Paying early in billing cycle reduces interest
  • Grace period: 21-25 days if you pay in full each month
BalanceAPRMonthly InterestAnnual Interest
$3,00022%~$55~$660
$5,00022%~$92~$1,100
$10,00022%~$183~$2,200
$15,00022%~$275~$3,300

Credit cards use "average daily balance" method - your balance is averaged over the month, then interest is calculated. Paying mid-month reduces your average daily balance and thus your interest. This is why making multiple payments per month can save money.

Q

How long does it take to pay off credit card debt?

Depends on balance, APR, and payment. $5,000 at 22% APR with $150/month = 44 months and $1,556 interest. Double payment to $300/month = 19 months and $653 interest. Minimum payments only? 17+ years and $7,000+ interest!

  • Minimum payments trap you in debt for years
  • Doubling payment more than halves payoff time
  • Extra $50/month makes a huge difference
  • Use our calculator to see your specific payoff timeline
$5,000 Balance at 22% APRMonths to PayoffTotal InterestTotal Paid
Minimum only ($100)94 months (8 years!)$4,311$9,311
$150/month44 months$1,556$6,556
$250/month24 months$855$5,855
$500/month11 months$379$5,379
Q

What is the best way to pay off credit card debt?

The debt avalanche method (highest interest first) saves the most money mathematically. The debt snowball method (smallest balance first) provides psychological wins. Both work - choose based on what keeps you motivated.

  • Avalanche: Pay minimums on all, extra to highest APR
  • Snowball: Pay minimums on all, extra to smallest balance
  • Stop using cards while paying off (critical!)
  • Balance transfer cards offer 0% APR for 12-21 months
  • Consolidation loans: Fixed payment, fixed timeline
MethodStrategySaves Most MoneyBest For
AvalancheHighest APR firstYesFinancially optimal
SnowballSmallest balance firstNoMotivation/quick wins
Balance TransferMove to 0% APR cardIf qualifyGood credit
Consolidation LoanSingle lower-rate loanOftenMultiple debts

The avalanche method saves the most money but requires discipline because high-interest debt may be high-balance too. The snowball method eliminates accounts faster, giving you wins that keep you motivated. Research shows completion rates are similar - pick what works for you.

Q

What is a good APR for a credit card?

Average credit card APR in 2026 is 21-24%. Excellent credit (750+) qualifies for 15-19%, Good credit (700-749) gets 19-23%, Fair credit (650-699) gets 23-28%, Poor credit (<650) gets 28%+. Rewards cards typically have higher APRs.

  • If paying in full monthly, APR doesn't matter (no interest)
  • If carrying balance, prioritize low APR over rewards
  • Balance transfer cards: 0% intro APR for 12-21 months
  • Credit union cards often have lower rates than bank cards
Credit ScoreTypical APR RangeExample Cards
Excellent (750+)15-19%Premium rewards, low-rate cards
Good (700-749)19-23%Standard rewards cards
Fair (650-699)23-28%Secured cards, rebuilding cards
Poor (<650)28%+Secured cards, high-fee cards
Q

Should I do a balance transfer to pay off credit cards?

Balance transfers can save hundreds in interest if you qualify for 0% APR offers. Transfer $5,000 from 22% APR to 0% for 18 months, pay $278/month = debt-free with $0 interest vs $1,100+ at 22%. Watch for transfer fees (3-5%).

  • Typical offer: 0% APR for 12-21 months
  • Transfer fee: 3-5% of balance (factor into savings)
  • Requires good credit (700+) to qualify for best offers
  • Must pay off before promo period ends (rates jump to 20%+)
  • Don't charge new purchases on transfer card
$5,000 BalanceKeep at 22% APRTransfer to 0% (18mo)Savings
Monthly Payment$278$278$0
Total Interest$1,001$0$1,001
Transfer Fee (3%)$0$150-$150
Net Savings--$851

Balance transfers work best when you have a plan to pay off the entire balance during the promotional period. If you can't pay it off in time, the remaining balance jumps to the card's regular APR (often 20-26%). Also, don't close old cards - it hurts credit utilization.

Q

Why is paying only the minimum so bad?

Minimum payments are designed to maximize interest for credit card companies. On $5,000 at 22% APR, minimum-only payments take 8+ years and cost $4,300+ in interest. You end up paying almost double the original balance!

  • Minimum = typically 2% of balance or $25, whichever is higher
  • As balance decreases, so does minimum - extending payoff time
  • Most of minimum payment goes to interest, not principal
  • $5,000 balance: minimum-only = 94 months, $9,311 total
  • $5,000 balance: $200/month = 31 months, $6,103 total (save $3,208)

Credit card companies profit most when you pay minimums forever. The minimum payment formula ensures you pay mostly interest and barely touch principal. Paying even $50 above minimum dramatically reduces payoff time. Set up automatic payments for more than minimum.

Example Calculations

1$5,000 Balance at 18% APR with $150/month Payments

Inputs

Current Balance$5,000
Annual Interest Rate (APR)18%
Monthly Payment$150

Result

Time to Pay Off3 years 11 months (47 months)
Total Interest$1,984
Total Payment$6,984
Minimum Payment (2% or $25)$100

Monthly rate = 18% / 12 = 1.5%. First month: interest = $5,000 × 0.015 = $75, principal paid = $150 - $75 = $75, new balance = $4,925. Each month, as the balance decreases, more of the $150 goes to principal and less to interest. After 47 months the balance is fully paid, with $1,984 in total interest.

2$8,000 Balance at 22% APR with $250/month Payments

Inputs

Current Balance$8,000
Annual Interest Rate (APR)22%
Monthly Payment$250

Result

Time to Pay Off4 years 1 month (49 months)
Total Interest$4,158
Total Payment$12,158
Minimum Payment (2% or $25)$160

Monthly rate = 22% / 12 = 1.833%. First month: interest = $8,000 × 0.01833 = $147, principal paid = $250 - $147 = $103, new balance = $7,897. The higher APR means more of each payment goes to interest initially. It takes 49 months to pay off the full balance, with $4,158 in total interest -- over half the original balance.

Formulas Used

Monthly Interest Charge

Interest = Remaining Balance × (APR / 100 / 12)

Each month, interest is calculated on the remaining balance using the monthly rate.

Where:

Remaining Balance= Current unpaid balance on the credit card
APR= Annual Percentage Rate of the credit card

Minimum Payment

Minimum Payment = max(Balance × 0.02, $25)

The minimum payment is typically 2% of the balance or $25, whichever is greater.

Where:

Balance= Current credit card balance

Monthly Principal Reduction

Principal Paid = Monthly Payment - Interest

Each month, only the portion of your payment above the interest charge reduces the balance.

Where:

Monthly Payment= The fixed amount you pay each month
Interest= Interest charged that month (Balance × monthly rate)

Understanding Credit Card Debt

Credit card interest compounds daily, making minimum payments costly over time.

Paying more than the minimum significantly reduces payoff time and total interest.

The debt avalanche method prioritizes high-interest cards to save money.

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Last Updated: Feb 12, 2026

This calculator is provided for informational and educational purposes only. Results are estimates and should not be considered professional financial, medical, legal, or other advice. Always consult a qualified professional before making important decisions. UseCalcPro is not responsible for any actions taken based on calculator results.

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