Enter your credit card balance, annual interest rate (APR), and your current monthly payment. The calculator instantly shows how long it will take to pay off the card and how much total interest you'll pay.

Adjust your monthly payment to see how increasing it shortens the timeline. Or switch to the "Target Payoff Date" mode to calculate the exact monthly payment needed to be debt-free by a specific date.

Credit card interest is among the most expensive forms of consumer debt, with APRs commonly ranging from 18% to 28%. Understanding how it compounds helps you appreciate why paying more than the minimum is so important.

Daily Compounding

Unlike most loans that compound monthly, credit card interest typically compounds daily. Your APR is divided by 365 to get the daily periodic rate, which is then applied to your outstanding balance each day. This means interest is charged on interest, and the balance grows slightly every day you carry it.

The Minimum Payment Trap

Credit card companies set minimum payments low — usually 1-3% of the balance — to maximize interest revenue. A $5,000 balance at 22% APR with minimum payments of 2% would take over 30 years to pay off and cost more than $12,000 in interest. The original $5,000 purchase would end up costing $17,000.

Balance Transfer Strategy

If you have good credit, a 0% APR balance transfer card can save significant interest. These offers typically last 12-21 months. The key is to pay off the transferred balance before the promotional period ends, as the regular APR (often 20%+) will apply to any remaining balance.