Credit Card Payoff Calculator
Estimate how long it will take to **pay off your credit card balance** based on the balance, interest rate, and monthly payment.
Months to Pay Off:
Total Interest Paid: $
Credit Card Payoff Calculator - A Complete Guide
A **Credit Card Payoff Calculator** helps estimate how long it will take to pay off **credit card debt** based on balance, interest rate, and monthly payment.
How Credit Card Debt Works
Credit cards charge **interest** on unpaid balances. If you only make minimum payments, your debt can **take years** to repay due to accumulating interest.
How to Calculate Your Payoff Time?
The formula considers:
- **Principal Balance** (total debt owed)
- **Interest Rate** (annual percentage rate divided by 12 for monthly interest)
- **Monthly Payment Amount** (the amount you pay toward your balance each month)
Example Calculations
Example 1: A credit card balance of **$5,000**, with an annual interest rate of **18%**, making **$200 monthly payments**.
**Step 1:** Monthly interest rate = **18% ÷ 12 = 1.5% or 0.015**
**Step 2:** It will take **31 months** to pay off.
**Step 3:** Total interest paid = **$1,215.60**
Example 2: A balance of **$10,000**, with an interest rate of **22%**, paying **$400 per month**.
**Step 1:** Monthly interest rate = **22% ÷ 12 = 1.833% or 0.01833**
**Step 2:** It will take **34 months** to pay off.
**Step 3:** Total interest paid = **$3,064.42**
Why Use a Credit Card Payoff Calculator?
- Plan your **debt repayment strategy**.
- See how extra payments **reduce interest and payoff time**.
- Understand the **true cost of carrying a balance**.
Use this **Credit Card Payoff Calculator** to take control of your finances and **pay off debt faster**.
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