How long does it take to pay off a credit card with minimum payments?
Often many years, because the minimum shrinks as you pay. The calculator's default rule is 1% of the balance plus interest, with a $35 floor. On this card, that's $200 in month one and only $8 in the last month. Your rule may differ, and your card agreement states it.
| What you pay | Paid off in | Total interest |
|---|---|---|
| Minimum, falling each month | 19 yrs 1 mo | $11,948 |
| First minimum, held at $200 | 4 yrs 7 mos | $4,444 |
| Fixed $250 | 3 yrs 2 mos | $2,957 |
The trap is that the falling minimum looks like relief. Your statement asks for less each month, and each cut stretches the debt. The second row changes nothing except refusing those cuts, and it saves $7,504.
Federal rules require a minimum payment warning on your statement, with an estimate of how long minimum payments will take and, in many cases, the payment that would clear the balance in 36 months. Check those figures against this calculator. They use your issuer's actual rules.
How long to pay off $5,000, $10,000, or $20,000 at a fixed payment?
At 24.99%, $10,000 paid at $500 a month takes 2 yrs 3 mos and costs $3,069 in interest. Paying $200 never clears it, because that balance charges about $208 a month in interest alone.
| Balance | $200/mo | $300/mo | $500/mo | $1,000/mo |
|---|---|---|---|---|
| $3,000 | 1 yr 7 mos, $634 | 1 yr, $399 | 7 mos, $239 | 4 mos, $131 |
| $5,000 | 3 yrs, $2,135 | 1 yr 9 mos, $1,206 | 1 yr, $666 | 6 mos, $337 |
| $10,000 | Never | 4 yrs 10 mos, $7,245 | 2 yrs 3 mos, $3,069 | 1 yr, $1,332 |
| $20,000 | Never | Never | 7 yrs 3 mos, $23,418 | 2 yrs 3 mos, $6,138 |
A quick check before you pick a payment: multiply your balance by your APR and divide by 1,200. That's the first month's interest, $135.36 on the example card. Anything you pay above it cuts the balance. Issuers usually compute interest daily, so your statement will differ a little.
What payment clears my card by a set date?
Pick the month you want to be done, then read across. Paying off $10,000 in two years at 24.99% takes $534 a month. The "Pay off by a date" option does this for any balance, assuming you make no new charges.
| Balance | 12 months | 24 months | 36 months | 48 months | 60 months |
|---|---|---|---|---|---|
| $3,000 | $285 | $160 | $119 | $99 | $88 |
| $5,000 | $475 | $267 | $199 | $166 | $147 |
| $10,000 | $950 | $534 | $398 | $332 | $293 |
| $20,000 | $1,901 | $1,067 | $795 | $663 | $587 |
Should I move my card balance to a 0% offer?
It often pays off, if you qualify and can stop using the card. Take a 3% fee, 18 months at 0%, and 24% afterward, the calculator's starting terms. At $250 a month, the transfer costs $438 in total, against $2,957 in interest if you stay put. These terms are examples, and your offer sets the real ones.
The number to find is the payment that clears the balance before the rate jumps. Here it's $372 a month: the $6,695 transferred, fee included, divided by 18. Pay $150 and you still owe $3,995 when the promo ends, for a total cost of $1,963. That's still less than the $10,436 of interest from paying $150 on the current card, but it takes 4 yrs 9 mos.
- New purchases. The CFPB warns that buying on the transfer card can cost you the grace period, so those purchases build interest until the whole balance, transfer included, is paid.
- Late payments. If you're more than 60 days late, the issuer can raise your rate, including on the transferred balance.
- Deferred interest. A true 0% offer charges interest on what's left after the promo. A "no interest if paid in full" offer can charge interest back to the original purchase date, so read which one you have. Federal rules also require a promo rate to last at least six months.
What if I keep using the card while paying it off?
New charges can add years to a payoff. Adding $100 of purchases each month to a $250 payment means only $150 is really going toward the debt. The payoff grows from 3 yrs 2 mos to 9 yrs 5 mos, and interest from $2,957 to $10,436. Use the "New charges each month" field if this is you, and move daily spending to a debit card or cash until the balance clears.
Several rates, several cards, and when to get help
One card can hold several APRs, for purchases, cash advances, and transfers. This calculator uses a single rate, so enter a rate weighted by balance. Federal rules say any amount above the minimum must go first to the balance with the highest APR, which is one more reason to pay more than the minimum. Deferred-interest balances are treated as 0% until the last two billing cycles of the promo, when extra payments must go to them first.
With several cards, use the debt payoff calculator to plan them together. To test a loan instead, try the personal loan calculator. The avalanche vs. snowball guide covers when consolidation or counseling makes sense.
If you can't cover the minimum, call your issuer before you miss a payment and ask about a lower-payment plan, as the FTC suggests. Your statement must also list a toll-free number for credit counseling information. A nonprofit credit counselor can review your budget, but ask about fees first. Avoid anyone who wants money before doing any work.
Common questions
How is credit card interest calculated each month?
This calculator divides the APR by 12 and multiplies by your balance, which comes to $135.36 on $6,500 at 24.99%. Issuers usually compute interest daily, so your statement may differ slightly.
How much does a lower APR help?
It helps, and asking costs nothing. Dropping from 24.99% to 19.99% at $250 a month cuts interest from $2,957 to $2,090 and finishes in 2 yrs 11 mos. An issuer doesn't have to agree.
Can I see a month-by-month payoff schedule?
Yes. The calculator shows payment, interest, principal, and balance for each month, and you can download it as a CSV to open in Excel or Google Sheets.
Why does the calculator say my balance will never be paid off?
Your payment doesn't cover the interest plus any new charges. Raise the payment above the first month's interest, or remove new charges, and a payoff date appears.
Should I pay off my card or save first?
As a rule of thumb, keep a small cash cushion so one surprise bill doesn't go back on the card, then put spare money toward the balance. Compare your card's APR with what your savings earn to see the difference.
Sources
- 12 CFR 1026.7(b)(12): Repayment disclosures · Consumer Financial Protection Bureau
- 12 CFR 1026.53: Allocation of payments · Consumer Financial Protection Bureau
- 12 CFR 1026.55: Limitations on increasing rates and fees · Consumer Financial Protection Bureau
- What do I need to know about consolidating my credit card debt? · Consumer Financial Protection Bureau
- How to understand special promotional financing offers on credit cards · Consumer Financial Protection Bureau
- How To Get Out of Debt · Federal Trade Commission