Enter Your Debt Details
Payoff Summary
Payoff Period (Current Payment): -
Total Interest Paid (Current Payment): -
If Monthly Payment is Increased by 25%:
New Payoff Period: -
Total Interest Paid: -
Time Saved: -
Interest Saved: -
💳 Overview: Pay Down Your Credit Card Faster
This Credit Card Debt Calculator helps you understand:
- 📆 How many months it will take to pay off your balance
- 💸 How much interest you’ll pay over time
- ⚡ How much time and interest you can save with extra payments
Whether you’re managing one card or multiple, this tool is essential for building a faster debt-free plan and avoiding thousands in extra interest.
📘 Explanation & Methodology
The calculator applies an amortization formula adapted for revolving debt. It assumes a consistent monthly payment and fixed annual interest rate, and it compares your current payment strategy with an optional 25% increase.
The number of months required to pay off the balance is calculated using:
n = -log(1 - r × L / P) / log(1 + r)
- L = current balance (loan principal)
- r = monthly interest rate (APR ÷ 12 ÷ 100)
- P = monthly payment
⚠️ If your payment is too low to cover the monthly interest, the formula fails — meaning your debt will grow, not shrink.
📊 Example Calculation
Let’s say you owe €5,000 on your card with an 18% APR, and you pay €150/month:
- Estimated payoff time: ~47 months
- Total interest paid: ~€2,050
Now if you increase your payment by 25% (to €187.50), your:
- ⏳ Payoff time drops to: ~35 months
- 💰 Interest savings: ~€487.50
Small changes = big savings.
💡 Use Cases
- 📉 Planning a debt-free roadmap
- 📆 Comparing payoff durations with different monthly budgets
- ⚖️ Estimating credit card refinancing or consolidation needs
- 📊 Understanding the effect of APR changes on long-term costs
❓ Frequently Asked Questions
How does the calculator handle interest?
It compounds interest monthly using your APR divided by 12. This gives a realistic projection of both time and cost.
What happens if my monthly payment is too low?
If your payment is less than or equal to the monthly interest charge, your balance will grow, not shrink. The tool will warn you in such cases.
How do extra payments help reduce interest?
More of your payment goes toward principal each month, which shortens the payoff period and decreases the total interest accrued.
Can I use this for multiple credit cards?
This tool estimates for a single card. To analyze multiple cards, use it separately for each balance or consider a dedicated debt snowball/avalanche tool.
Does it factor in minimum payments?
No — it assumes a consistent fixed monthly payment you specify. For minimum payment scenarios, use your statement minimum or set it manually.
Can I adjust the extra payment percentage?
This version shows the effect of a 25% increase only. For more flexible simulations, use our advanced debt payoff planner (coming soon).
Is this suitable for loan repayment too?
Yes — it works for any amortized loan or credit-based debt with monthly interest, including small personal loans and lines of credit.