Credit Card Payoff Calculator
Enter your credit card balance, annual percentage rate, and either a fixed monthly payment or a target payoff date. The calculator shows you how many months until the balance hits zero and the total interest you’ll pay along the way. No login, no email, no upsell — just the math. Built by the tax and financial planning team at The Reed Corporation for clients who want a clean number before they decide how aggressively to pay down revolving debt.
Calculator
Credit card details
Payoff method
How the payoff math works
Credit card interest compounds daily in most cases, but issuers bill monthly. The calculator uses the standard monthly compounding approximation: monthly rate = APR ÷ 12. Each month, interest accrues on the remaining balance, then the payment reduces what’s left. With a fixed payment, the payoff date is determined by solving for the number of periods. With a target date, the required payment is computed from the present value of an annuity formula.
The minimum payment trap: most issuers set minimums at 1–2% of the balance or $25, whichever is greater. At 22.99% APR on an $8,500 balance, a minimum payment starting around $170 barely covers interest — payoff takes over 30 years and costs more than $13,000 in interest alone. Doubling the payment to $340 cuts that to under 4 years and saves roughly $10,000.
The most impactful variable isn’t the interest rate — it’s the payment amount. Dropping the APR from 22% to 18% saves a few hundred dollars on a typical balance. Increasing the monthly payment by $100 can save thousands and cut years off the timeline.
Balance transfer considerations
A 0% APR balance transfer offer sounds like a complete solution but carries three risks: the transfer fee (typically 3–5% of the balance, added upfront), the revert rate when the promotional period ends (often 25–29%), and the temptation to run up the original card again. Model the transfer as a new loan: balance × (1 + transfer fee %), zero interest for the promo period, then the revert APR if any balance remains.
If you can pay off the full transferred balance within the promotional window, a balance transfer is almost always the right move. If you can’t, calculate whether the transfer fee plus the post-promo interest is less than the interest you’d pay staying on the current card. Use this calculator with the promo-period payment required, then compare.