Credit Card Calculator
Calculate how long it will take to pay off your credit card and how much interest you'll pay.
How long to pay off credit card?
Payoff time depends on your balance, APR, and monthly payment. Making only minimum payments (typically 2-3% of balance) can take 10-30 years and cost 2-3x the original balance in interest. For example, a $5,000 balance at 18% APR with minimum payments takes 13+ years and $4,000+ in interest.
What's a good monthly payment?
Pay as much as you can afford above the minimum. Even an extra $50-100/month can save thousands in interest and years of payments. Aim to pay at least 3-5% of your balance monthly, or more if possible. The faster you pay, the less interest you'll pay overall.
How is credit card interest calculated?
Interest is calculated daily based on your average daily balance and APR. The daily rate = APR / 365. Interest compounds, meaning you pay interest on previous interest charges. This is why carrying a balance is expensive—interest accumulates quickly.
Should I pay off credit cards or invest?
Generally, pay off high-interest credit card debt (15%+ APR) before investing. The guaranteed 'return' from avoiding 18-25% credit card interest typically beats investment returns. Pay off debt first, then build an emergency fund, then invest.