How the calculator works
- Your plan: each month, interest is added and your payment comes off, until the balance is cleared.
- Paying only the minimum: worked out with your card’s minimum payment formula, which you can change under More options.
- To be debt-free sooner: the monthly payment that would clear the balance in 1, 2, 3 or 5 years.
Paying more makes a big difference
$5,000 at 22.36%, with no new spending:
| You pay | Time to clear | Total interest | Saved on the minimum |
|---|---|---|---|
| Minimum only | 19 years, 3 months | $8,241 | – |
| $150 a month | 4 years, 5 months | $2,886 | $5,356 |
| $200 a month | 2 years, 10 months | $1,793 | $6,448 |
| $300 a month | 1 year, 9 months | $1,043 | $7,198 |
| $400 a month | 1 year, 3 months | $746 | $7,495 |
| $500 a month | 1 year | $585 | $7,656 |
The minimum is 1% of the balance plus interest, or $25 if that’s more, so it shrinks as the balance does. Credit cards that charged interest averaged 22.36% in August 2026 (Federal Reserve).
Everything you pay above the minimum comes straight off the balance, so even a small increase cuts years off. A fixed payment also beats the minimum because the minimum falls as you pay the balance down, slowing you just as you start making progress.
What it takes to be debt-free by a date
The monthly payment, and the total interest, to clear a balance in 1 to 5 years:
| Balance | 1 year | 2 years | 3 years | 5 years |
|---|---|---|---|---|
| $2,000 | $187.54 $250 interest | $104.11 $499 interest | $76.75 $763 interest | $55.65 $1,339 interest |
| $5,000 | $468.84 $626 interest | $260.28 $1,247 interest | $191.88 $1,908 interest | $139.12 $3,347 interest |
| $10,000 | $937.68 $1,252 interest | $520.56 $2,493 interest | $383.77 $3,816 interest | $278.24 $6,694 interest |
| $20,000 | $1,875.35 $2,504 interest | $1,041.12 $4,987 interest | $767.54 $7,631 interest | $556.48 $13,389 interest |
Choose the date you want to be debt-free by and set up an automatic payment for that amount. If it’s more than you can manage, a later date with a payment you can keep up beats an early one you can’t.
How card interest works
- The APR is the yearly rate. A card often has different APRs for purchases, balance transfers and cash advances, and a higher penalty APR that can apply if you pay late.
- Interest is daily on most cards, on each day’s balance. Paying earlier in the month, or twice a month, trims it a little.
- The grace period: pay the full statement balance by the due date and most cards charge no interest on new purchases. Carry a balance and you usually lose it, so new purchases cost interest straight away.
Tips to clear it faster
- Stop using the card while you pay it off.
- Pay more than the minimum, even a little, and make it automatic.
- With more than one card, pay the minimum on each and put anything extra on the one with the highest rate. The debt payoff calculator plans it for you.
- Ask your card company for a lower rate. If you’ve always paid on time, it’s worth a call.
- Move the balance to a 0% card or a cheaper personal loan, but only if you stop adding to it.
For a step-by-step plan, see how to pay off debt. If the payments are more than you can manage, see help with debt.