Credit card statements must show how long minimum-only repayment can take. This calculator turns that idea into an editable plan, while grounding the assumptions in U.S. CFPB guidance on APR and interest calculations.
"The fastest lever is simple: raise the fixed monthly payment until each month covers interest and meaningfully cuts principal."
Use statement APR
Enter the purchase APR from your statement. In the U.S., if balances have different APRs, payments above the minimum are generally allocated first to the highest APR balance under 12 CFR 1026.53.
Beat the interest
If the payment is below monthly interest, the debt grows. Increase the payment until the chart slopes down every month.
Model promotions
For a 0% APR or balance transfer offer, include fees and rerun the payoff before the promo expires. Deferred interest can be costly if the balance is not paid in full.
Frequently Asked Questions
It simulates repayment month by month: monthly interest is estimated as APR / 12 × remaining balance, then your fixed payment is applied. Real issuers often calculate interest daily using the average daily balance, as explained by the U.S. CFPB, so use this as a planning estimate.
If the fixed payment does not exceed the first month of interest, the balance will not amortize in this model. The U.S. CFPB credit card resources explain that APR is the price you pay for borrowing on a credit card, so the payment must cover interest and reduce principal.
Paying only the minimum keeps the account current but usually increases total interest and payoff time. The required U.S. federal minimum payment warning says making only minimum payments means you pay more interest and take longer to pay off the balance; see the U.S. FDIC Truth in Lending Act summary.
A grace period can help only when you pay the full balance by the due date and are not carrying a balance. The U.S. CFPB grace period guide notes that once you carry a balance, new purchases may start accruing interest immediately.
Run a second scenario with the promotional APR and include any transfer fee in your starting balance. Be careful with deferred-interest offers: the U.S. CFPB explains that missed payoff deadlines can trigger interest you thought was deferred.
