Credit Card Payoff Calculator

This calculator estimates how a fixed credit-card balance is repaid when the APR and monthly payment remain constant. It walks a monthly schedule: interest is opening balance × APR ÷ 1,200, interest is rounded to cents, the payment covers that interest first, and the remainder reduces principal. It compares the entered payment with that payment plus the extra amount. The schedule ends when the final payment clears the balance and reports payment periods and total interest. Credit-card statements often use a daily periodic rate, average daily balance, transaction dates, grace periods, separate purchase or cash-advance APRs, and a minimum-payment formula that changes as the balance changes. This calculator intentionally uses one fixed APR and no new purchases so the arithmetic is easy to inspect. Use the purchase APR for the balance you are modeling and check the statement for fees, promotional expiration, deferred interest, and payment allocation. The issuer’s statement and payoff quote control the actual amount. The monthly payment input is not automatically the minimum payment. Minimum payments can be a percentage of balance, interest and fees plus a principal floor, or another contract-defined amount. If you enter today’s minimum as a fixed payment, the result can differ when the issuer recalculates it. A payment that does not exceed the modeled first-month interest cannot reduce the balance and does not produce a normal finite payoff. New purchases also invalidate a fixed-balance schedule unless you model them separately. Extra payment works through principal. When an additional $100 reaches principal now, later interest is calculated on a smaller balance. The calculator reports the difference between the baseline and accelerated schedules as months saved and interest saved. Confirm with the issuer that extra money is applied to principal rather than held as an advance payment. The CFPB explains how card interest is calculated and Regulation Z governs required disclosures, but neither source promises that every issuer uses this simplified monthly convention. When several cards exist, the avalanche approach sends extra money to the highest-rate balance first and can reduce interest mathematically. The snowball approach targets the smallest balance first and may provide a clearer short-term milestone. Either method should preserve minimum payments, an emergency reserve, and a payment that remains affordable. Use the debt payoff calculator for a fixed installment-style comparison and run each card separately when APRs or promotions differ. Common mistakes include entering APR as a monthly rate, treating a cash-advance APR as a purchase APR, ignoring annual or late fees, and assuming a card can be used while the payoff date remains unchanged. Save the statement date, rate, balance, payment, and extra amount. Recalculate after a rate reset, transfer, missed payment, fee, or new charge. This is educational arithmetic, not credit counseling. Use the first statement after changing the payment as a reconciliation check. Compare opening balance, interest, payment application, and closing balance. If the issuer’s result is materially different, investigate daily timing, a separate APR bucket, new transactions, or a fee before changing the plan. A clear record also helps when comparing avalanche and snowball strategies because you can separate behavioral progress from the interest result.