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Enter your balance, APR, and monthly payment. Add an extra amount to see how quickly it speeds things up.
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How it works
This calculator estimates interest monthly using a monthly rate (APR ÷ 12). Each month, interest is added to the balance, then your payment reduces the balance. Your payment covers interest first; the rest goes toward the balance.
Most credit cards compound interest daily, not on a fixed once-a-month schedule like a mortgage or auto loan. The issuer typically takes APR ÷ 365 (or 360), multiplies by each day’s balance, and adds that finance charge to the account. Carrying a balance through the statement period — even for part of the month — can accrue interest every day, and a new purchase may lose the grace period once you revolve. An installment loan is the opposite: the payment amount is locked in the contract, and extra principal just shortens the schedule. Revolving cards have no built-in end date; the balance only falls if you pay more than the interest that posted. This tool’s monthly rate is a close planning estimate of that daily engine.
If you have more than one card, the order you attack them changes both the math and how the plan feels. Avalanche puts every extra dollar toward the highest APR while you make minimums on the rest — that sequence usually costs the least interest. Snowball pays the smallest balance first so accounts close sooner, which some people stick with more easily even if it costs a bit more. The difference is largest when APRs are far apart. See a fuller comparison in snowball vs. avalanche, or run the dedicated avalanche and snowball calculators.
Minimum payments are designed to keep the account current, not to clear the debt quickly. On a $5,000 balance at 18% APR, a typical minimum of about 2% of the balance (with a small dollar floor) can take roughly 31 years and about $12,300 in interest — you would pay around $17,300 to retire $5,000. Paying a fixed $150 a month instead cuts that to about four years and roughly $2,000 in interest. The first minimum often looks affordable because most of it is covering that month’s finance charge; little principal moves. That is the minimum-payment trap. For a dedicated walkthrough, see minimum payment only and why minimums cost so much.
Why does payoff feel slow at first?
Early on, the balance is highest, so interest is higher. As the balance drops, the interest portion shrinks and payoff speeds up.
What does extra monthly payment change?
Extra payments reduce the balance sooner, which reduces future interest and can shorten payoff time a lot.
Is this exact?
This is a close estimate. Some cards use daily interest and statement timing, which can cause small differences.
What's a good APR for a credit card?
There is no single “good” purchase APR — it depends on your credit and the card type. Competitive unsecured cards for strong credit often sit in the mid-teens; many store cards and subprime offers start in the low-to-mid 20s; penalty APRs after a late payment can approach 30%. A 0% introductory rate is only “good” if you can pay the balance before the promo ends, because leftover debt then reverts to the regular APR, sometimes retroactively. Compare the ongoing purchase APR, not the teaser, and watch cash-advance APRs, which are usually higher and may accrue from day one. This calculator uses whichever APR you enter for the whole payoff window.
Does closing a paid-off card hurt my credit score?
It can, mainly in two ways. Closing the card removes that limit from your available credit, so any remaining balances on other cards become a larger share of your total limits (utilization). A jump in utilization is a common reason scores dip after a closure. It can also shorten the average age of accounts over time once the closed card ages off your report. The account usually stays on the report for years if it was in good standing, so the hit is not always immediate. If the card has no annual fee and you can avoid new revolving debt, leaving it open (even at $0, with an occasional small purchase you pay in full) generally protects utilization better than closing it the week you hit zero.
Should I pay off cards or save for an emergency fund first?
High-APR card debt (often 15–25%+) usually costs more than you earn in a savings account, so extra dollars above a small cash floor often return more as principal payments than as interest in the bank. That said, paying every spare dollar toward the card and leaving $0 in cash can force the next car repair back onto the card at the same APR. A practical split is a starter emergency fund (many people use about $1,000, or one month of essential bills) while you keep making more than the minimum, then throw new surplus at the balance. Pause extra principal only if a 0% promo is still running and you already have a written payoff date before it ends. If your employer offers a 401(k) match, that tradeoff is different: see pay off debt or grab the 401(k) match for a worked $200/month example. This is planning, not a requirement to pick one goal and ignore the other.
Related: All payoff tools · Avalanche method · Snowball method
Related decisions
If you’re paying interest each month, small changes can have a big impact. Try these next.
- Extra payment scenarios (extra $25 / $50 / $100 and more)
- What if I only pay the minimum?
- Debt avalanche calculator (highest APR first)
- Debt snowball calculator (smallest balance first)
- How credit card interest works
Back to the hub: Debt payoff tools