Credit Card Payoff Calculator - Estimate Payoff Time & Monthly Payment

How Do You Calculate Credit Card Payoff?

Required Monthly Payment Formula

P = (B × r × (1 + r)^n) ÷ ((1 + r)^n - 1) + C

Where:

• P = Required monthly payment
• B = Current balance (principal)
• r = Monthly interest rate (APR ÷ 12)
• n = Number of months to payoff
• C = Additional monthly charges

Payoff Time Calculation Formula (for fixed monthly payment)

n = -log(1 - (B × r) ÷ (P - C)) ÷ log(1 + r)

Where:

• n = Number of months to payoff
• B = Current balance
• r = Monthly interest rate
• P = Monthly payment amount
• C = Additional monthly charges

Note: These formulas assume compound interest and do not account for variable APRs, late fees, or other penalty charges. Actual results may vary based on your credit card issuer's specific terms and conditions.

What Is the Monthly Payment on a $2,000 Credit Card Balance?

Assuming:

• Annual Interest Rate: 17.5%
• Additional Monthly Charges: $100
• Annual Fee: $35
• Payoff Time: 24 months

The estimated monthly payment would be $203.55.

How Long Will It Take to Pay off a $3,000 Credit Card Balance?

Assuming:

• Annual Interest Rate: 17.5%
• Additional Monthly Charges: $100
• Annual Fee: $35
• Current Monthly Payment: $200

With these conditions, the estimated payoff time is 42 months (3 years 6 months).

Reference

This calculator is based on standard financial mathematics and guidelines from reputable sources:

Government Resources

• Consumer Financial Protection Bureau (CFPB) - Credit Card Interest Rates
• Federal Reserve - Credit Card Resources
• Federal Trade Commission (FTC) - Credit and Debt
• USA.gov - Managing Debt

Financial Education Resources

• Investor.gov - Understanding Debt
• MyMoney.gov - Spending and Credit