Credit Card Payoff Calculator
Debt Free Date & Interest Cost
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.