Credit Card Payoff Calculator — Minimum Payments vs a Fixed Payment

How to use the credit card payoff calculator

1. Enter your Card balance and APR.
2. Choose the Minimum payment rule: Interest + % of balance, or % of balance only.
3. Set the Minimum payment percentage and the Minimum payment floor (the smallest minimum your issuer accepts).
4. Enter the Fixed monthly payment you could afford instead, and choose your currency.
5. Compare time to clear and total interest for both plans, and read the interest saved by the fixed payment.

What it does and when to use it

A card statement tells you the minimum due, but not what paying only that minimum will cost over time. This calculator plays out both plans month by month so you can see the gap in years and money.

Use it to:

• Decide how much to pay each month to be debt-free by a certain date.
• Show yourself, in hard numbers, why the minimum is an expensive habit.
• Check whether a balance transfer or a personal loan would save money, by comparing it with the fixed-payment result.
• Rank several cards. Run each one, then put spare money towards the card with the highest APR first.

For a closer look at how a single month’s interest is charged, see the Credit Card Interest Calculator. For loans and other debts with a fixed payment, use the Debt Payoff Calculator.

How it works

Each month the tool:

1. Charges interest: interest = balance × APR ÷ 12.
2. Works out the payment. For the minimum plan, that is either interest + balance × minimum % or balance × minimum %, but never less than the floor. For the fixed plan it is your fixed amount.
3. Takes the part of the payment above the interest off the balance.

It repeats this until the balance reaches zero, up to 100 years. If a payment does not cover the interest, the plan is marked as never clearing, rather than showing a misleading total. The CFPB notes that many issuers charge interest daily on your average daily balance, so treat these results as close estimates.

Worked examples

A $5,000 balance at 24% APR. The minimum is interest plus 1% of the balance, with a $25 floor. Paying a fixed $250 a month clears the card in 2 years 2 months with $1,449.36 of interest. Paying only the minimum takes 19 years 6 months and costs $8,886.95 in interest. The fixed payment saves $7,437.58.

When the minimum never clears the debt. Same card, but the minimum is a flat 2% of the balance. The monthly interest is also 2% of the balance, so the minimum only pays interest. The result is Never (payment does not cover interest). The $250 fixed payment still clears it in 2 years 2 months.

A card charging 3.5% a month. A ₹80,000 balance at 42% APR, with a minimum of 5% of the balance and a ₹200 floor. Paying ₹8,000 a month clears it in 1 year 1 month with ₹20,212.24 of interest. Minimum payments take 19 years 6 months and cost ₹1,80,332.88. Interest saved by the fixed payment: ₹1,60,120.64.

Limits and tips

• The tool assumes you stop using the card and that the APR stays the same. New spending, fees, a promotional rate ending or a penalty APR all lengthen the payoff.
• Interest is charged monthly at APR ÷ 12, not daily.
• If a lower rate is on offer, compare a fixed loan with the EMI Calculator.
• Paying your full statement balance by the due date usually avoids purchase interest altogether if your card has a grace period.