Finance

Debt Payoff Calculator

How long until your debt is gone.

Current balance

Annual rate (%)

Monthly payment

Result

35.6 mo

≈ 2.96 years to pay off

Total paid

$10,666.12

Interest paid

$2,666.12

Download results

Quick summary

A debt-payoff calculator shows how long it will take to eliminate a balance and how much interest you'll pay given a fixed monthly payment.

How to calculate debt payoff manually

List balance, APR, and the monthly payment you can commit.
Each month, accrue interest = balance · (APR / 12).
Subtract (payment − interest) from the balance.
Repeat until the balance reaches zero; the count of months is your payoff time.

Estimate how many months it will take to pay off a credit card or loan and how much interest you'll pay.

How it works

n = ln(P / (P − B·i)) / ln(1 + i), where B is the balance, i the monthly rate, and P the monthly payment.

Example

$8,000 balance at 19.99% with $300/mo → ≈ 33 months, $1,879 interest.

Expert guide

Paying off credit card debt: strategies that actually work

U.S. credit card balances crossed $1.2 trillion in 2024, with an average APR around 22%. At minimum payments alone, a $5,000 balance can take more than 20 years to pay off and cost over $7,000 in interest. A clear payoff plan changes everything.

Avalanche vs snowball: choose the method you'll stick with

The debt avalanche method pays minimums on every card and throws every extra dollar at the highest-APR balance first. Mathematically, this saves the most interest. The debt snowball method instead targets the smallest balance first to build psychological momentum from quick wins. Behavioral research from Northwestern University and others suggests the snowball method actually leads to higher completion rates for many people because motivation matters as much as math. Pick the one you'll actually finish.

Balance transfers and 0% intro APR offers

Many U.S. issuers offer 0% intro APR balance transfer cards for 15 to 21 months, with a one-time transfer fee of 3% to 5%. Moving a $5,000 balance from a 22% APR card to a 0% intro card for 18 months can save hundreds in interest if you fully pay it off before the promo ends. The catch: any remaining balance after the promo period reverts to the standard APR, often 20%+. Use a calculator to confirm you can clear the balance in time, and never make new purchases on the transfer card.

Why minimum payments are designed to keep you in debt

U.S. card issuers typically set the minimum payment at 1% to 3% of the balance plus monthly interest. On a $5,000 balance at 22% APR, a 2% minimum payment is about $190 — but roughly $92 of that is pure interest. You'd be paying off only $98 of principal. That's why doubling or tripling the minimum is one of the highest-return financial moves available: every extra dollar above the minimum goes 100% to principal and stops compounding against you immediately.

Frequently asked questions

Will paying off credit card debt hurt my credit score?

Quite the opposite. Credit utilization (balance ÷ credit limit) is the second-largest factor in your FICO score. Dropping utilization from 80% to under 30% can boost your score by 50 to 100 points within one or two billing cycles. Keep the cards open after paying them off — closing them reduces your total available credit and can raise utilization on remaining balances.

Should I use savings to pay off credit card debt?

Generally yes, while keeping a small emergency fund of $1,000 to $2,000 intact. Earning 4% in a high-yield savings account while paying 22% on a credit card is a guaranteed losing trade. Once the cards are paid off, redirect those minimum payments straight into rebuilding three to six months of expenses.

Is debt consolidation a good idea?

Consolidating multiple cards into a single fixed-rate personal loan (often 8% to 15% APR) can dramatically cut interest and give you a clear payoff date. It only works if you stop using the freed-up credit cards. Otherwise, you end up with the loan and new card balances on top.

Insight

Average US credit card APRs (Fed G.19)

Federal Reserve data on credit card balances assessed interest.

Card type	Average APR	Penalty APR
All accounts	21.8 %	29.99 %
Store-branded	30.4 %	32.99 %
Secured cards	23.6 %	29.99 %
Travel rewards	20.7 %	29.99 %
0 % intro (12–21 mo)	0 %	Reverts ≈ 22 %

Verified by Financial Analyst

Editorial disclaimer

For informational purposes only. Consult a certified financial professional before making financial decisions.

How we calculate your credit card payoff

n = −log(1 − i · P / M) / log(1 + i)

P is your current credit card balance, M is your fixed monthly payment, and i is the monthly interest rate (APR ÷ 12). The formula returns n, the number of months needed to fully pay off the balance. Total interest paid equals (M × n) − P. If your payment is too small to cover monthly interest, the balance never pays off.