Credit Card Payoff Calculator
See how long it takes to pay off your credit card. Enter balance, APR, and monthly payment to get payoff time and total interest.
How it works
Enter your current balance, APR (annual percentage rate), and fixed monthly payment. The calculator shows how many months until payoff and total interest. Pay more than the minimum to reduce interest and pay off faster.
Credit card payoff
Enter balance, APR, and fixed monthly payment to see payoff timeline.
Payoff results
Based on your balance, APR, and fixed monthly payment (simplified monthly interest model).
Interest is modeled as APR ÷ 12 once per month before your payment (including a correct final partial payment). Many issuers use daily interest on average daily balance—see the CFPB on how card interest is calculated. Estimates only; not financial or tax advice.
Typical credit card APR ranges
| Card type | Typical APR |
|---|---|
| Low-rate / balance transfer | 15%–22% |
| Standard rewards | 18%–26% |
| Premium / travel rewards | 20%–29% |
| Store / retail | 22%–30% |
| Secured / subprime | 24%–36% |
Your APR is on your statement. Pay the full statement balance each month to avoid interest. If you carry a balance, paying more than the minimum shortens payoff and reduces total interest.
Credit card interest and tax
Interest is not tax deductible. For individuals, personal credit card interest is generally not deductible—the IRS lists credit card interest for personal expenses among nondeductible personal interest (see IRS Topic no. 505, Interest expense). Paying down balances avoids future interest you would otherwise owe. Use this calculator to see how extra payments reduce total interest.
Common questions
The Consumer Financial Protection Bureau explains that many issuers calculate interest daily using your average daily balance. If you pay the full statement balance by the due date, you can avoid interest on new purchases when a grace period applies. Carrying a balance triggers finance charges on what you owe. This calculator uses a simpler monthly accrual for estimates.
Use our debt payoff calculator to model avalanche (highest APR first) vs snowball (smallest balance first) across all cards. Avalanche saves more interest; snowball can be more motivating.
If your monthly payment is less than the interest charged, your balance increases. The calculator warns you. Increase your payment to at least cover interest to start reducing principal. Ideally, pay more than the minimum.
Most cardholders assume they only pay interest on the unpaid balance. But if you carry a balance and lose your grace period, new purchases start accruing interest from the date of each transaction — not the statement due date. This is one of the most misunderstood and costly credit card rules.
Grace period active (pay in full monthly)
- ✓ New purchases: zero interest if paid by due date
- ✓ 21–25 day window between statement close and due date
- ✓ Required by CARD Act: statements delivered 21+ days before due date
- ✓ You're effectively borrowing interest-free for up to 55 days
Grace period lost (carrying a balance)
- ✗ New purchases accrue interest from the day of purchase
- ✗ Your effective APR on new spending is your full card rate immediately
- ✗ Cash advances: never have a grace period — always accrue from day of transaction
- ✗ To restore: pay in full for two consecutive billing cycles
Dollar impact: $2,000 balance at 21.52% APR + $500 in new purchases
Grace period active
Interest on $2,000 balance: ~$36/mo
Interest on new $500 charge: $0 (paid by due date)
Monthly interest: ~$36
Grace period lost
Interest on $2,000 balance: ~$36/mo
Interest on new $500 from day 1: ~$9/mo
Monthly interest: ~$45 (+25%)
Source: CFPB “What is a grace period for a credit card?” (cfpb.gov, last reviewed Sep 2024); CARD Act 2009 §163 (15 U.S.C. §1666b); Regulation Z §1026.5(b)(2)(ii). Cash advance treatment: Regulation Z §1026.7(b)(4).
Penalty APR is the highest rate a card can charge — legally capped at 29.99%, with a 2026 average of 27.44% (WalletHub Credit Card Landscape Report). Most cardholders don't realize it can apply after a single missed payment and may stay on future purchases indefinitely.
| Trigger | What Gets Hit | Notice Required | How to Reverse |
|---|---|---|---|
| 1 missed payment | Future purchases only | 45 days advance notice | Card-specific; may persist indefinitely |
| 60+ days past due | Entire existing balance | 45 days advance notice | 6 consecutive on-time payments → issuer must review & reduce (CARD Act §302) |
| Returned payment | Future purchases / entire balance | 45 days advance notice | Same as above |
Dollar impact: $5,000 balance — regular APR vs. penalty APR
Regular rate (22% APR)
Monthly interest: ~$92
Annual interest: ~$1,100
Avg penalty (27.44% APR)
Monthly interest: ~$114
Annual interest: ~$1,372
Max penalty (29.99% APR)
Monthly interest: ~$125
Annual interest: ~$1,500
Extra annual cost vs. regular rate: $272–$400/year just from triggering penalty APR on a $5,000 balance.
Prevention is the only reliable protection
Set up autopay for at least the minimum payment. Even paying one day late can eventually trigger penalty APR under the CARD Act's 45-day notice provision. The penalty APR for future purchases may never revert — the law only requires reversal for the existing balance after 6 on-time payments.
Sources: WalletHub Credit Card Landscape Report Q1 2026 (27.44% avg penalty APR); CARD Act 2009 §302 (PLAW-111publ24); CFPB “What is a penalty APR?”; Regulation Z §1026.55.
Every credit card statement is legally required to show a “Minimum Payment Warning” box with two disclosures: (1) how long your balance takes to pay off at minimums only, and (2) the exact monthly payment to pay off your balance in exactly 3 years and what it costs in interest. Most cardholders ignore this box. It's actually one of the most actionable, personalized payoff tools available — and it's already on your statement.
What the law requires on every statement (Reg Z §1026.7(b)(12))
MINIMUM PAYMENT WARNING
If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance.
If you make only the minimum payment:
You will pay off the balance shown on this statement in about: [X years]
If you would like to pay off the balance in 3 years:
Monthly payment: [$XX.XX]
| Balance (at 21.52% APR) | Minimums only (payoff / interest) | 3-year payoff ($/mo / total interest) | Interest saved |
|---|---|---|---|
| $2,000 | ~18 years / ~$2,400 | ~$64/mo / ~$290 | ~$2,110 |
| $4,000 | ~20 years / ~$4,800 | ~$127/mo / ~$570 | ~$4,230 |
| $8,000 | ~22 years / ~$9,600 | ~$254/mo / ~$1,140 | ~$8,460 |
| $11,507 (avg household) | ~24 years / ~$13,800 | ~$365/mo / ~$1,640 | ~$12,160 |
How to use this:
Pull out your latest credit card statement and find the Minimum Payment Warning box. The “pay off in 3 years” figure is calculated from your exact balance and APR — more accurate than any external calculator. Use that dollar amount as your monthly payment target in this calculator to confirm the timeline and set it as your autopay amount. Congress mandated this disclosure precisely because they knew borrowers needed a concrete payoff anchor, not just a minimum payment.
Source: Regulation Z §1026.7(b)(12); CFPB Appendix M1 to Part 1026 (Repayment Disclosures). Interest estimates modeled at 21.52% APR (Federal Reserve G.19 Q1 2026) with monthly compounding, 2% minimum payment.
Frequently asked questions
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Last updated: 2026-04-02 · Estimates only; not financial or tax advice.