What this credit card payoff calculator estimates
The tool estimates a payoff schedule from the balance, APR and payment plan you enter. It supports a fixed payment, a simplified minimum-payment formula or a payment solved for a target number of months.
For a fixed installment loan with a contractual term, use the Loan Calculator. For building cash before paying a balance, compare the Savings Calculator.
How credit card interest is modeled
The calculator applies APR divided by 12 to each opening monthly balance, adds any entered new charges, then subtracts the payment. The CFPB explains that many issuers calculate interest daily using an average daily balance, and different transaction categories may carry different APRs.
Payment strategies
Fixed payment repeats the entered base payment plus optional extra. Minimum formula uses the larger of the entered percentage or dollar floor and then adds extra. Target payoff solves the level payment needed for the chosen month count.
If interest and new charges prevent the balance from falling, the calculator stops and reports that the plan does not amortize.
Extra payments and continued charges
For fixed and minimum strategies, the calculator compares an entered extra payment with the same modeled plan without extra when both plans pay off. Continued new charges can materially extend payoff and are assumed to receive the same APR with no grace period.
Important limitations
- The model uses one APR and monthly compounding.
- It does not model daily transaction timing, multiple balance categories, promotional rates, fees or payment allocation rules.
- The minimum formula is user-entered and may not match the issuer.
- Rounding and statement-cycle dates can change the final payment.