Credit Card Payoff Calculator

Calculate the time it will take to pay off credit card debt using the payoff calculator below.

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Card Payoff Summary:

Estimated Payoff Date:
Apr 2024
Time to Pay Off:
1 yr and 6 mos
Total Interest:
$1,130.37
Total Payments:
$8,630.37
This calculation is based on widely-accepted formulas, but it is not a recommendation for how to handle your finances. Consult with a financial professional before making financial decisions.
Learn how we calculated this below


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How to Calculate Credit Card Payoff Date

Before racking up a balance on a credit card, you may want to plan how much your monthly payment will be, how much you’ll pay in interest, and how much time you can expect to spend paying it off.

Just like a traditional loan, auto loan, student loan, or mortgage, the payoff for a credit card depends on the amount of principal that is paid off each month. Paying off more principal shortens the payoff period, while paying less will take longer to pay off.

You can calculate the payoff date by iterating through each payment and calculating the amount of principal that is paid off, then reducing the balance by that amount. To do this, you’ll need a few formulas.

Credit Card Payment Formula

Once you know the monthly payment, you can determine what portion of the payment goes to interest and what portion goes to lower the principal.

The formula to calculate monthly interest is:

interest = P × r

Where:
P = remaining principal balance
r = periodic interest rate

The interest portion of the card payment is equal to the remaining principal multiplied by the periodic rate. The periodic interest rate is the interest rate for the payment period, and it’s equal to the annual interest rate divided by the number of payment periods (usually 12 for monthly payments).

Then, you can calculate the principal portion of the payment using this formula:

principal = PMT − (P P × r)

Where:
PMT = payment amount
P = remaining principal balance
r = periodic interest rate

The principal payment is equal to the monthly payment minus the interest payment.

Steps to Calculate the Payoff Time

To calculate the time to pay off a credit card, start with using these formulas to calculate the interest and principal for the first payment.

Then, subtract the principal paid from the principal balance to find the remaining balance.

Continue these steps continuously until the remaining principal balance is equal to zero.

The number of times you iterated through these steps is the number of payments made. Assuming a monthly payment, that’s the number of months it will take to pay off the credit card.

For example, let’s calculate the payoff time for a credit card with a balance of $15,000, a monthly payment of $600, and an annual interest rate of 18%.

Let’s start by finding the periodic rate:

periodic rate = annual rate ÷ 12 = 1.5%

Then, find the principal and interest for the first month:

interest = $15,000 × 1.5 = $225

principal = $600 − ($15,000 × 1.5%)
principal = $375

Now, let’s find the remaining principal balance:

remaining principal = $15,000 – $375
remaining principal = $14,625

So, after the first payment, there will be $14,625 remaining on the credit card.

We can repeat these steps to see that it will take 32 months for the principal to reach zero and pay off the card.

How to Payoff Credit Card Debt Faster

There are a few ways that you can pay off a credit card faster: pay extra each month or reduce the interest rate. Both of these options increase the principal portion of each payment, reducing the amount of time to pay it off.

The first method involves paying more than was originally planned.

The second method is to lower the interest rate. You can do this in a couple different ways.

First, you could ask your lender for a lower rate. If you always make your payments on time and have a great credit score, this could work.

A more common approach to achieve this, though, is to transfer the balance to another credit card that offers a lower interest rate.

To really speed things up, you can try to do both methods.