How to use this calculator
How this payoff estimate works
Each month we add interest using the annual percentage rate divided by twelve. We then subtract your planned monthly payment and repeat until the balance is paid off. The last payment can be smaller than your regular payment. We also total the interest charged along the way.
Why a payment may never pay off a balance
If a payment is less than or equal to the interest added at the beginning, the principal will not decrease. The calculator warns you about this rather than producing a misleading payoff date. Extra payments can reduce both the time to payoff and total interest.
What this does not include
Many credit cards accrue interest daily, and actual APRs can change. This model uses monthly compounding, a fixed APR, no added charges, no new purchases and on-time payments at month end. It is an educational approximation, not a lender statement.
A practical way to use the result
Try your current payment, then add $25 or $50 as an extra payment. Compare the resulting interest and duration. If you are juggling multiple cards, calculate them individually before deciding on your payoff strategy.
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