Credit Card Payoff Calculator
This calculator shows how many months it takes to clear a credit-card balance at a fixed monthly payment and how much interest you pay along the way. Enter your own balance, rate, and payment — the defaults are examples, not a quote.
How this calculator works
A credit card charges interest on the outstanding balance every month. If you pay only the minimum, most of the payment covers interest and very little reduces the balance, so the debt can last for years. This calculator shows how many months a fixed payment takes to clear the balance.
Formula: with r = annualRatePct ÷ 100 ÷ 12, each month the interest is interest = balance × r, the principal repaid is principal = payment − interest, and the new balance is balance − principal. The loop repeats until the balance reaches zero. The final month's payment is reduced to exactly clear what is left, so the balance ends at zero rather than overshooting.
If the monthly payment is at or below the interest-only amount (balance × r), the balance never falls. In that case the calculator returns an error and reports the minimum payment needed to start reducing the balance, instead of running forever.
The result is an illustration. Real card issuers may compound daily, apply a minimum-payment formula, charge fees, and change the rate on new transactions. If you can pay more than the amount you entered, the payoff accelerates and the total interest falls. A balance-transfer or consolidation option may also reduce the cost — compare the total, not just the monthly payment.
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Frequently Asked Questions
Why does the balance barely move at first?
Most of an early payment covers interest, so little is left to reduce the principal. As the balance falls, the interest falls and the payment clears the debt faster.
What happens if I pay less than the interest?
The balance never falls and can grow. The calculator returns an error and shows the minimum payment needed to start reducing the balance.
Is the minimum payment enough?
Often not. A minimum payment can be close to the interest-only amount, so the payoff can take many years. Paying more shortens the term and cuts the interest.
Does this include fees or new purchases?
No. It models a fixed balance at a fixed rate with a fixed monthly payment. New purchases, fees, and rate changes will change the result.
How can I clear the balance faster?
Pay more each month, or move the balance to a lower-rate option such as a balance transfer or consolidation loan, after checking the fees.
Last updated: September 16, 2026 · By the Instalment.ca Editorial Team
We research Canadian lending rules and update these pages when the law, the data, or the available offers change. We are not a lender and we do not provide personal financial advice.
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This is general information, not financial, legal, or tax advice.
Rates and terms vary by lender, creditworthiness, and province. Figures shown are examples only.