Credit Card Payoff Calculator
Estimate payoff timeline, interest costs, and compare strategies.
Amortization Schedule
| Month | Beginning Balance | Interest | Principal | Payment | Ending Balance |
|---|
How It Works
This calculator uses real credit card amortization with monthly compounding. Interest is calculated on the remaining balance each month, and payments are applied according to your chosen strategy. Extra payments reduce principal faster, saving interest and time.
Formula
Monthly interest = Balance × (APR / 100 / 12). Payment is determined by strategy: minimum (greater of fixed $ or % of balance), minimum+extra, or fixed amount. If payment ≤ interest, the balance will never be paid off.
Example
Balance $5,000, APR 20%, min 2% ($100), extra $50 → monthly payment $150. First month interest $83.33, principal $66.67, new balance $4,933.33. Payoff in ~40 months vs ~188 months minimum only.
Benefits
- See real impact of extra payments
- Compare strategies
- Plan debt freedom
Tips & Mistakes
Pay more than minimum, avoid new purchases. Common mistake: paying minimum only – costs thousands in interest.
FAQs
Simulates monthly payments and interest until payoff.
Yes, you save interest and time.
Varies; often thousands over years.
It takes much longer and costs more.
This calculator provides estimates only and should not be considered financial advice.