How credit card interest works
Credit cards charge interest on the balance you carry from month to month. The APR is divided by 12 (or charged daily) and added to what you owe. With a typical APR above 20%, a balance can grow fast — and if your payment barely covers the interest, the debt hardly shrinks at all.
Months to pay off = −log(1 − Balance × r ÷ Payment) ÷ log(1 + r)
Here r is the monthly rate (APR ÷ 12 ÷ 100). The calculator simulates every month so you can see the exact payoff date.
Example: a $6,000 balance at 22.9% APR, paying $250 a month, takes 33 months to clear and costs about $2,100 in interest.
The minimum payment trap
Card issuers set the minimum payment low — often interest plus 1% of the balance, with a floor of around $25–$35. Paying only the minimum keeps you in debt for many years and can cost more in interest than you originally spent. The comparison under the calculator shows exactly how much the minimum would cost you.
Fastest ways to pay off credit card debt
- Pay more than the minimum, every month. Even an extra $50 cuts months off the payoff time.
- Avalanche method: with several cards, pay the minimum on all and put every extra dollar toward the highest-APR card. This costs the least interest.
- Snowball method: clear the smallest balance first for quick wins, then roll that payment into the next card. It costs a bit more but helps many people stay motivated.
- 0% balance transfer card: moving the balance to a card with a 0% intro period (usually 12–21 months, with a 3%–5% transfer fee) lets every payment reduce the principal. Use this calculator with 0% APR to plan clearing it before the offer ends.
- Debt consolidation loan: a personal loan at a lower fixed rate can replace several cards with one payment. Compare the total cost with the loan calculator.
- Ask for a lower APR. If you have a good payment history, a short call to your issuer can work.
Read more in our guide how to pay off credit card debt fast.
Frequently asked questions
How long will it take to pay off my credit card?
Enter your balance, APR and monthly payment above. As an example, $6,000 at 22.9% APR with $250 a month takes about 33 months.
Why is my credit card balance barely going down?
If most of your payment goes to interest, little is left to reduce the balance. Paying more than the minimum, or moving the balance to a lower rate, fixes this.
Is it better to pay off credit card debt or save?
Usually pay off the card first, because card APRs (often 20%+) are far higher than savings rates. Keep a small emergency fund so you don't add new debt.
Does paying off my credit card improve my credit score?
Yes. Lower balances reduce your credit utilization, one of the biggest factors in your score. Keeping utilization under 30% (ideally under 10%) helps.
