Credit Card Payoff Calculator

Most US issuers set the minimum as the greater of a percentage of the statement balance — commonly 1% to 3%, plus that period's interest and fees in some formulas — and a dollar floor, usually $25 to $40. Because the percentage applies to a shrinking balance, the required payment falls every month, which is what stretches the payoff out so far. This calculator uses a percent-of-balance minimum with a dollar floor.

A minimum set at 2% of the balance against a 22% APR leaves roughly 0.2% of the balance going to principal each month, because interest alone consumes about 1.8%. The balance therefore falls very slowly, and as it falls the required payment falls with it — so the ratio never improves. Balances that would clear in about two years at a fixed payment can remain open for decades on the minimum.

Holding the payment constant instead of letting it shrink means every dollar of balance reduction permanently increases the share of the next payment that reaches principal. The effect compounds in the borrower's favour and is the single largest lever in the arithmetic. The comparison above shows both paths on the same balance and rate.

Most issuers apply a daily periodic rate — the APR divided by 365 — to the average daily balance, then post the total as one interest charge per statement. This calculator uses the simpler monthly equivalent, APR ÷ 12, which produces figures very close to a real statement but not identical to the cent. Cards typically also offer a grace period: interest is not charged on new purchases when the statement balance is paid in full each month.

Deferred interest promotions ("no interest if paid in full within 12 months") charge no interest while the promotion runs, but if any balance remains at the end, interest is charged retroactively on the entire original amount. This calculator does not model deferred interest, promotional 0% APRs, or balance transfer fees. Read the promotional terms directly for those.

A balance transfer moves a balance to a different card, usually with a promotional rate for a fixed window and a transfer fee of about 3% to 5% of the amount moved. The principal is unchanged and the fee is added to it. Whether the promotional rate outweighs the fee depends on the balance, the rates, and whether the balance clears before the promotion ends.

Yes, and the two zeros describe different cards. A card whose minimum is a flat dollar amount has no percentage term: set the percentage to 0 and put the flat amount in the floor, and the required payment stays the same every month instead of shrinking. A card with no dollar floor has only the percentage term: set the floor to 0, and the required payment keeps falling with the balance without ever quite reaching zero. Leaving either box empty uses the placeholder default instead — 2% and $25. Setting both to 0 leaves no minimum formula to compare against, and a negative figure in either box is not a payment formula, so those two cases are reported rather than calculated.

No. This calculator runs entirely in your browser. Nothing you type is transmitted to Equity Rank or saved anywhere, and no account is required to use it.