What is Credit Card Payoff Calculator?
Calculates exact repayment timeline and cumulative interest paid when committing a fixed dollar amount to card balances.
How to Use This Calculator
- Enter current credit card balance.
- Enter APR percentage.
- Enter target monthly fixed payment.
- Review payoff months and total interest.
The Mathematical Formula & Variables
N = -ln(1 - (r * Balance) / PMT) / ln(1 + r)
Step-by-Step Worked Example
Scenario: $5,000 balance at 21% APR paying $200 per month.
- r = 0.21 / 12 = 0.0175.
- Payoff formula solves to 32.5 months -> 33 months.
- Total payments = 33 * $200 = $6,600 (adjusting last payment).
- Total interest = $1,489.12.
Result: 33 Months ($1,489.12 interest)
Frequently Asked Questions
What happens if monthly payment is less than monthly interest?
The balance enters negative amortization and will grow indefinitely because the payment is insufficient to cover the finance charges.