Last updated 3 September 2026
Why minimum payments take so long
A minimum payment is usually set at a small percentage of what you owe, so it shrinks as the balance shrinks — which is exactly why the balance stops shrinking. Most of an early payment goes to interest rather than the debt itself, and on a card charging over 20% a year that split can stay lopsided for a long time. The gap this calculator makes visible is the useful one: paying a fixed amount instead of the shrinking minimum, or adding even a small extra each month, often cuts years off the timeline and saves more in interest than most people expect.
Where the payment goes each month
Interest on a credit card is charged on the balance, so early payments are absorbed almost entirely by interest and the principal barely moves. On a $5,000 balance at 22% APR, the first month's interest is roughly $92. A $150 payment therefore reduces what you owe by about $58, not $150 — which is why a balance can feel stationary despite consistent payments.
The arithmetic reverses as the balance falls, and it accelerates. Every dollar of principal cleared reduces next month's interest, which leaves more of the following payment to attack the principal. This is why paying even slightly above the minimum has a disproportionate effect: the additional amount goes entirely to principal, and its benefit compounds for the remaining life of the debt.
Assumptions and limitations
What the maths does. It assumes you stop spending on the card entirely, the interest rate stays fixed, and you pay the same amount every month until the balance clears.
Card interest is more complicated than this model. Real cards apply interest daily on an average daily balance, may charge different rates for purchases, cash advances and balance transfers, and often apply payments to the cheapest debt last. Promotional 0% periods end, and the rate that follows can be much higher. Any of these can make the real cost differ from the estimate.
What is not included. Annual fees, late-payment and over-limit charges, foreign transaction fees, balance-transfer fees, and any new spending on the card — which is what most often stops a payoff plan from working.
If the debt is unmanageable. If the minimum payment is already unaffordable, this calculator will not help. Free, regulated debt advice services exist in most countries and are worth contacting before the situation gets worse.
Assumptions that apply to every finance calculator here
Currency is a display choice only. Changing the currency symbol relabels the output; it does not convert anything and no exchange rate is used anywhere in this tool.
Tax and lending rules vary by country. Nothing here is adjusted for the rules where you live — income tax, capital gains tax, stamp duty, lending caps, affordability tests and consumer-credit regulation all differ, and several of them can change the real answer materially.
Rates and returns are not guaranteed. Any rate you enter is treated as fixed for the whole period. Real interest rates move, real investment returns vary year to year and can be negative, and past performance does not predict future results.
This is an estimate, not advice. The result is arithmetic on the numbers you typed. It is not an offer, a quote, an approval, an investment recommendation or financial advice. Before committing to anything, get figures from the actual lender, provider or a qualified adviser in your country.
Common questions
How is the payoff time worked out?
Interest is applied monthly at the APR divided by twelve, then your payment is subtracted from the balance. That repeats until the balance reaches zero. It assumes a fixed rate, a fixed payment, and no new purchases on the card.
What if my payment is too small to clear the card?
If the monthly payment is less than the interest charged that month, the balance grows instead of shrinking and the card never clears. The calculator tells you when that's the case rather than showing an impossible number.
Should I pay the minimum or a fixed amount?
A fixed amount almost always clears the card faster. The minimum is calculated as a percentage of the balance, so it falls as you pay down — keeping your payment steady means more of it goes to the debt every month rather than to interest.
Is my information stored anywhere?
No. The calculation runs entirely in your browser and nothing is uploaded or saved to a server.