Credit card payoff calculator: months to pay off and total interest (2026)
Edited by Moe Ameen · Published
A $6,000 card balance at 22% APR takes 26 months to clear at $300 a month and costs about $1,543 in interest. Pay only a minimum of 1% plus interest and the same balance takes about 22 and a half years and roughly $10,147 in interest. Federal rules make your statement show how long minimum payments take and what you'd pay each month to clear the balance in three years.
Key takeaways
- The bigger the payment above the monthly interest, the faster the balance goes and the less interest you pay.
- To clear a balance in a set number of months, use the loan formula: balance × r(1+r)^n ÷ ((1+r)^n − 1).
- Issuers usually charge interest daily, at the APR divided by 360 or 365, on your average daily balance.
- Your statement has to show a minimum payment warning and the payment that clears the balance in 36 months.
- In August 2026, card accounts charged interest averaged 22.36% APR, per the Federal Reserve.
How long will it take to pay off my credit card?
Subtract each month's interest from your payment, take what's left off the balance, and repeat until it hits zero. Bigger payments shrink it much faster.
Each month, interest is added to the balance and your payment is taken off. Only the part of the payment above that month's interest reduces what you owe. That's why a small bump in the payment saves a lot: going from $150 to $300 a month on the balance below cuts the payoff time by almost two thirds.
| Monthly payment | Months to pay off | Total interest | Total paid |
|---|---|---|---|
| $150 | 73 | $4,913.45 | $10,913.45 |
| $200 | 44 | $2,790.68 | $8,790.68 |
| $300 | 26 | $1,542.87 | $7,542.87 |
If the payment is at or below the first month's interest ($110 here), the balance never goes down. The calculator tells you when that happens.
How much do I need to pay to clear my card in a set number of months?
Treat the balance like a loan: balance × r(1+r)^n ÷ ((1+r)^n − 1), where r is the APR ÷ 12 and n is the number of months.
It's the same amortization formula our business loan calculator uses. For $6,000 at 22%, r is about 0.01833.
| Pay it off in | Monthly payment | Total interest |
|---|---|---|
| 24 months | $311.27 | $1,470.45 |
| 36 months | $229.14 | $2,249.14 |
This only works if you stop adding to the card. New purchases go on top of the balance, and once you carry a balance most cards charge interest on them right away. More on that in how credit card interest works.
How do credit card companies calculate interest?
Many issuers charge interest every day at a daily periodic rate, which is your APR divided by 360 or 365, on your average daily balance.
The CFPB says many card companies work out interest daily, based on your average daily balance [2]. The daily rate is the APR divided by 360 or 365, depending on the issuer, and each day's interest is added to the balance, so it compounds daily [3]. If your card has a grace period and you pay the full balance by the due date, you can avoid interest on purchases [2].
What happens if I only pay the minimum on my credit card?
It takes years and costs far more interest. Your statement must warn you and show how long minimum payments take and what they cost in total.
The Credit Card Act, passed in May 2009, made issuers print two things on every statement: how long and how much it takes to repay the balance with minimum payments only, and the monthly payment that clears it in 36 months [8]. Regulation Z sets the wording. The box opens: "Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance" [4]. It also shows the total cost of the 36-month plan and how much it saves [4]. The 36-month lines can be left off when minimum payments would clear the balance in three years or less anyway [4].
The Federal Reserve's sample statement shows the gap. On a $3,000 balance, paying only the minimum takes about 11 years and costs an estimated $4,745 in total. Paying $103 a month clears it in 3 years for $3,712, a saving of $1,033 [9].
The issuer's estimate assumes you pay only the minimum, add no new charges, and the APR stays put [5]. It uses your card's own minimum payment formula [5].
Formulas vary. Bankrate says the minimum is usually a flat percentage of the balance, and some issuers add new interest, fees or past-due amounts on top [6]. Credit Karma says it's generally the larger of a set dollar amount or a percentage of the balance [7]. Regulation Z's own illustration uses 2% of the balance or $20, whichever is greater [5].
| Minimum payment formula | First payment | Time to pay off | Total interest |
|---|---|---|---|
| 1% of balance plus that month's interest, at least $20 | $170.00 | 271 months (about 22½ years) | $10,146.54 |
| 2% of balance, at least $20 | $120.00 | More than 100 years | More than $56,000 |
| Fixed $229.14 (the 36-month payment) | $229.14 | 36 months | $2,249.14 |
The 2% row is the trap at its worst. At 22% APR the monthly interest is about 1.83% of the balance, so a 2% minimum pays down only a sliver each month. Switching from the 1%-plus-interest minimum to $229.14 a month saves about $7,897 in interest. Our guide to minimum payments covers how issuers set them.
What is the average credit card APR right now?
In August 2026, the average APR on card accounts that were charged interest was 22.36%, per the Federal Reserve. Across all accounts it was 21.19%.
| Period | All accounts | Accounts charged interest |
|---|---|---|
| 2024 | 21.58% | 22.89% |
| 2025 | 21.22% | 22.32% |
| August 2026 | 21.19% | 22.36% |
The "all accounts" figure is the stated APR averaged over every account at reporting banks. The "charged interest" figure is total finance charges divided by the balances they were charged on, leaving out accounts that paid no interest [1]. These are averages, not a rate anyone is offering you. Your card's APR is on your statement and in your cardholder agreement.
Glisten tool
Credit card payoff calculator
Glisten tool · Credit card payoff calculator
— to pay off
Enter a balance and an APR from 0 to 100%.
Estimates only. Interest here is worked out monthly (APR ÷ 12). Your issuer charges it daily, so its figures will differ a little. The grey example figures are illustrations, not rates offered to you. This runs in your browser, and nothing you type is sent anywhere or saved.
Every figure in the tables above comes out of this calculator with the inputs shown. Set the minimum formula to match your card and you'll get your own version of the statement's warning box, plus the 36-month payment to compare it with.
Is this right for you?
Best for
- Picking a monthly payment that clears a card by a date you choose.
- Seeing what paying only the minimum costs over the life of the balance.
Not ideal for
- Cards you're still spending on. It assumes no new charges.
- Exact interest to the cent. Issuers charge daily and this tool works monthly.
- Several cards at once. Run each card on its own.
Frequently asked questions
How do I calculate how long it will take to pay off a credit card?
Each month, add the interest (balance × APR ÷ 12) and subtract your payment, until the balance reaches zero. $6,000 at 22% takes 26 months at $300 a month.
How much should I pay to clear my card in 3 years?
Use balance × r(1+r)^36 ÷ ((1+r)^36 − 1), with r = APR ÷ 12. For $6,000 at 22% that's $229.14 a month. Your statement shows the issuer's own 36-month figure [4].
Do credit cards charge interest daily or monthly?
Many charge it daily, at the APR divided by 360 or 365, and bill it monthly [2][3].
Why is my minimum payment so low?
Minimums are often a small percentage of the balance, sometimes with that month's interest added [6][7]. That keeps the payment low, and the balance takes years to clear.
What is a good credit card APR?
There's no single good rate, but the Federal Reserve's average for accounts charged interest was 22.36% in August 2026 [1]. Your own rate depends on your card and your credit.
Is this calculator private?
Yes. It runs in your browser, and nothing you type is sent anywhere or saved.
How we know this
On November 2, 2026 we read the Federal Reserve's G.19 consumer credit release of October 7, 2026, the CFPB's pages on how card interest is calculated and on the daily periodic rate, Regulation Z section 1026.7 and Appendix M1 on the CFPB's site, the Federal Reserve's 2009 annual report section on the Credit Card Act and its consumer guide to the card rules, and Bankrate's and Credit Karma's explainers on minimum payments. Every worked figure is our own arithmetic, using monthly interest (APR ÷ 12), and the calculator reproduces each one.
- G.19 Consumer Credit, release of October 7, 2026, Federal Reserve Board. Checked November 2, 2026.
- How does my credit card company calculate the amount of interest I owe?, Consumer Financial Protection Bureau. Checked November 2, 2026.
- What is a "daily periodic rate" on a credit card?, Consumer Financial Protection Bureau. Checked November 2, 2026.
- Regulation Z, 12 CFR 1026.7: Periodic statement, Consumer Financial Protection Bureau. Checked November 2, 2026.
- Regulation Z, Appendix M1: Repayment disclosures, Consumer Financial Protection Bureau. Checked November 2, 2026.
- Guide to credit card minimum payments, Bankrate. Checked November 2, 2026.
- What to know about a credit card minimum payment, Credit Karma. Checked November 2, 2026.
- Annual Report 2009: Consumer and Community Affairs, Federal Reserve Board. Checked November 2, 2026.
- What you need to know: New credit card rules, Federal Reserve Board. Checked November 2, 2026.