Credit Card Payoff Calculator
Find out exactly how long it will take to clear your balance, how much interest you will pay, and your payoff date — whether you pay the minimum or a fixed amount each month.
Your Repayment Summary
| Month | Payment | Principal | Interest | Remaining Balance |
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About the Credit Card Payoff Calculator
Credit card debt is one of the most expensive forms of borrowing. With typical annual interest rates between 19.99% and 22.99% in Canada, and 18%–29.99% in the United States, even a modest balance can take many years to clear if you only pay the minimum each month — and cost you far more in interest than the original purchase price.
Our free credit card repayment calculator shows you exactly how long it will take to pay off your balance under three strategies: paying the minimum each month, paying a fixed amount of your choosing, or working backward from a target payoff date to see what monthly payment you need.
How the Minimum Payment Trap Works
Most card issuers calculate the minimum payment as approximately 2% of your outstanding balance (or a small fixed floor, whichever is greater). Because the minimum drops as your balance shrinks, you end up paying less each month — but the interest keeps compounding. A $5,000 balance at 19.99% APR paid at the 2% minimum can take over 30 years to clear and cost more than $7,000 in interest alone.
The calculator illustrates this starkly. Switch from minimum to a fixed $150 monthly payment on that same balance and payoff time drops to under 4 years with roughly $3,500 in interest saved.
How Interest Is Calculated
Credit card interest compounds daily in Canada and the United States (monthly compounding in most UK and Australian cards). This calculator uses monthly compounding for simplicity, which is standard for repayment planning. The monthly rate is your APR divided by 12. Each month, interest is applied to your outstanding balance before your payment is deducted.
Strategies to Pay Off Faster
Pay more than the minimum. Even an extra $50 per month above the minimum can shave years off your repayment timeline. The earlier you make extra payments, the more interest you save.
Use the avalanche method. If you carry balances on multiple cards, focus every extra dollar on the card with the highest interest rate first while paying the minimum on the others. Once the highest-rate card is cleared, roll that payment into the next. This is mathematically the fastest way to become debt-free.
Consider a balance transfer. Many card issuers offer promotional 0% balance transfer rates for 6–21 months. Transferring your balance and paying aggressively during the promo period can eliminate interest entirely — but watch for transfer fees (typically 1%–3%).
Country-Specific Notes
Canada: The standard purchase APR is 19.99% on most major cards. Low-rate cards (typically 12.99%–14.99%) are available but often require a credit check. The minimum payment floor is usually $10 or 2%–3% of the balance.
United States: Variable APRs are set as a benchmark rate (prime) plus a margin. The average US credit card APR as of 2026 is around 20%–27%. The CARD Act requires minimum payments to cover at least the interest charge plus 1% of principal.
United Kingdom: Representative APRs typically range from 22.9% to 34.9%. Most UK cards compound interest monthly. The minimum payment is usually 1%–2% of balance plus the month’s interest, or a fixed floor of £25.
Australia: Purchase rates typically range from 13.99% to 22.74% on major cards. The minimum payment is usually 2% of the closing balance or AU$25, whichever is greater.