What this tool does
Estimate how long a fixed monthly payment may take to clear one credit-card balance and how much monthly-model interest may accrue.
How to use it
- Enter the current balance and annual percentage rate (APR).
- Enter a fixed payment you can make every month without adding new purchases.
- Calculate, then compare the payoff time and total interest with your actual card statement.
Formula and method
Each month the calculator adds balance×(APR÷12) and then subtracts the fixed payment. It repeats until the balance reaches zero, for at most 1,200 months. The payment must exceed the first month’s estimated interest.
Worked example
A $5,000 balance at 18% APR with a $200 monthly payment takes about 32 months in this simplified model. Estimated interest is roughly $1,300, so the total paid is about $6,300.
Common uses
- Testing whether a payment clears debt by a target date
- Comparing higher fixed-payment scenarios
- Seeing why a payment near the interest charge reduces principal slowly
Limitations
Many issuers calculate interest daily from an average daily balance, and cards can have several APRs, variable rates, fees, grace periods and changing minimums. This monthly model excludes new spending and payment-allocation rules. Use the statement or issuer payoff figure for an actual decision.
FAQ
Why can the calculator reject my payment?
If the payment does not exceed the first estimated monthly interest, this fixed-rate model cannot reduce the balance.
Will my statement match exactly?
Usually not. CFPB notes that many issuers accrue interest daily, so transaction dates and contract terms affect the actual amount.