June 23, 2016

Credit Card Payoff Calculator

Credit Card Payoff Calculator

This dual-functioncredit card payoff tool allows you to perform two very useful calculations. The first portion allows you to see how long it will take to pay off your credit card(s) give a specific monthly payment. Use this portion to find out the effects of higher or lower payments on the total interest amount you’ll pay until the card is paid off.

Just enter your current outstanding card balance and your current interest rate, then enter the amount you’d like to pay each month. When you click “Submit”, you’ll see a full ledger of how many months it will take to pay off the debt completely, as well as how much you’re paying towards interest vs. principle each month.

(* You can also add a second credit card by using the “Add Credit Card” button. You’ll see the results for your second card at the bottom of the page after your first card’s results are shown.)

The second portion of the calculator will show you how much money you’ll need to pay towards your credit card each month in order to pay it off in a set amount of time (in months).

We recommend that you try experimenting with different repayment schedules; try to find the optimum level of payment that will both:
minimize the total interest you’ll pay over the life of the loan.

minimize the total interest you’ll pay over the life of the loan
Many people are not able to increase their monthly payment beyond the minimum month to month, but do want to make extra payments now and then when bonuses, tax returns, or other influxes of cash come in. Do see the effects of adding one-time or periodic payments? Check out our Best Credit Loan Calculator.

Credit Card Payoff Calculator [Enter Number Only]

Calculate How Many Months Required?

Outstanding Amount($)

Annual Interest Rate(%)

Monthly Payment($)

Calculate How Much Payment Required?

Outstanding Amount($)

Annual Interest Rate(%)

How Many Months


How is Credit Card Interest Compounded?

Understanding how credit card interest is compounded and applied will help you see the importance of paying off your account balances as soon as you are financially able. Because of the way interest is calculated, your balance grows fast and can get out of control quickly. While credit card providers do publish their calculation methods in the fine print with every monthly statement, trying to understand just how interest is applied is not always easy.

The Daily Balance Method

In the United States, interest is generally compounded daily on credit card balances.

1. The daily rate is calculated- If your APR is 15%, your daily balance will be calculated as follows:
15% divided by 365 days = 0.0411%
So you would be charged 0.0411% each day an amount is carried over as a balance.

2. Interest is compounded daily- The advertised APR is referred to as the nominal rate. The effective interest rate is higher because of daily compounding. Referring back to the above example, the nominal 15% APR would become an effective interest rate of 16.18% if interest was compounded daily.
Any payments, credits, and new charges are taken into account when the applicable interest for each day is calculated.

3. The daily interest charges are added up- Interest for a complete billing cycle is added up by combining the daily interest charges during that period.Referring to the above example, the nominal monthly APR will be 1.25% (15% divided by 12 months) and the effective APR will be 1.258% if compounded daily.


While we make every effort to ensure the accuracy of the credit card payoff calculator tool, we are not liable for damages, whether monetary, incidental, consequential or otherwise in connection with its use. The calculator tool is not intended as a replacement for professional independent financial advice.