Credit Card Payoff Calculator

How the calculation works

Monthly interest = opening balance × APR / 12. Payment first covers interest and then principal. The last payment is reduced to the outstanding balance plus that month’s interest. For a target N months, payment = P × r / [1 − (1 + r)^−N], or P/N at zero APR. A payment that cannot cover first-month interest is rejected.

Worked example

A $1,200 balance at zero APR and $100 monthly payments is repaid in twelve months with no interest. To repay the same balance over six months at zero APR requires $200 monthly. A $100 payment against $12,000 at 12% APR only covers first-month interest, so it cannot repay the balance under this model.

Assumptions and limitations

One balance, one fixed APR and end-of-month payments are modeled. There are no new purchases, cash advances, fees, rate changes, grace periods or promotional expiries. Monthly interest is a simplified approximation; issuers may calculate interest daily on multiple balance types. A zero balance has no payments. Target mode ignores the manually entered monthly payment.

This result is not a card issuer’s payoff quote or a minimum-payment formula. Check statement terms and payment allocation. A fixed payment can differ from the declining percentage minimum on a real card. The schedule stops at payoff and caps the final payment; changing an input clears the previous result so an outdated schedule cannot be downloaded.

Sources and editorial responsibility

Maintained by Renvoro Pty Ltd. These mathematical estimates do not provide financial, tax, legal or investment advice.

• CFPB: card interest can use daily balances