Credit Card Calculator

How to use this calculator

1. Enter or choose card balance.
2. Enter or choose aPR.
3. Enter or choose your fixed monthly payment.
4. Enter or choose minimum payment rule.
5. Enter or choose minimum payment percentage.
6. The time to pay off with your payment updates as you type. Use Copy result or Share to keep it.

Method

Each month: Interest = Balance × APR ÷ 12; Balance = Balance + Interest − Payment. Fixed payment: n = −ln(1 − B × r ÷ P) ÷ ln(1 + r), rounded up. Minimum = max(Floor, Interest + p% × Balance) or max(Floor, p% × Statement balance)

B

starting balance

r

APR ÷ 12

P

fixed monthly payment

p%

minimum payment percentage

Worked example

1. Monthly rate r = 22% ÷ 12 = 1.8333%; first month’s interest = 5,000 × 0.018333 = 91.67.
2. Paying 200: n = −ln(1 − 5,000 × 0.018333 ÷ 200) ÷ ln(1.018333) = 33.75, so 34 payments and 1,749.88 of interest.
3. Minimum only: the first minimum is 91.67 + 1% × 5,000 = 141.67, and it shrinks as the balance falls.
4. Paid month by month until the floor of 25 takes over, the minimum route takes 230 months and 8,099.77 of interest.

Paying $200 a month clears a $5,000 balance at 22% APR in 34 months; paying only the minimum takes over 19 years and costs about $6,350 more in interest.

What the result means

The minimum payment is designed to keep the account in good standing, not to clear the debt. Any fixed amount above the first minimum shortens the payoff dramatically. If you carry balances on several cards, the Debt Payoff Calculator orders them for you.

Assumptions and limits

• No new purchases, fees or rate changes.
• Interest is charged monthly at APR ÷ 12 on the balance; card issuers actually use the average daily balance, so real figures differ slightly.
• The minimum is worked out on the balance after that month’s interest is added.
• Promotional rates, late fees and penalty APRs are not modelled.
• Minimum payment rules vary by issuer and country; enter yours.

Sources

• Consumer Financial Protection Bureau