Credit Card Payoff Calculator

Both modes use the same monthly rate. Payment mode walks the balance down month by month; target mode solves the amortization formula for the payment that reaches zero on your deadline.

• Monthly rate r = APR ÷ 100 ÷ 12
• Payment mode — each month: interest = balance × r, then balance = balance + interest − payment
• Target mode: payment = balance × r ÷ (1 − (1 + r)^−months); at 0% APR it is balance ÷ months
• Total interest = the sum of the monthly interest charges

Payment mode tells you how long a balance lasts at the amount you can pay. Target mode tells you the payment required to clear it by a chosen month. Interest as a share of what you pay shows how much of the total is cost rather than balance.

Common mistakes and assumptions

• Using the statement minimum as a plan — minimums are a share of the balance and fall as you pay.
• Entering a promotional rate that expires part-way through; the APR here applies for the whole payoff.
• Leaving the card in use. Every new purchase resets the math.

A $6,500 balance at 22.99% APR that you want gone in 24 months.

1. 1Monthly rate = 22.99 ÷ 1200 = 0.01915833.
2. 2Required payment = $6,500 × 0.01915833 ÷ (1 − 1.01915833^−24) = $340.39.
3. 3Total paid = $340.39 × 24 = $8,169.46, so interest is about $1,669.46.
4. 4Month one alone charges $124.53 in interest.
5. 5Switch to payment mode with $200 a month and the same balance takes 47 months and roughly $2,900 in interest.

Why do minimum payments take so long?

A typical minimum is 1–2% of the balance plus interest, so almost nothing goes to principal early on. Enter your real minimum in payment mode and the payoff time usually surprises people.

What if I have a 0% promotional rate?

Enter 0 as the APR and use target mode with the number of months left in your promotion. That shows the payment needed to finish before the regular rate returns.

Does using the card again change things?

Yes, significantly. Both modes assume the balance only goes down. New purchases restart the interest math on the added amount.

Is this the same as a balance transfer plan?

You can model one: use the new balance including any transfer fee, and the promotional APR and window. Compare the total paid against staying put.