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Credit card interest calculator
The minimum payment is a trap — see what a bigger payment saves.
Credit card interest compounds monthly at brutal APRs. Enter your balance, APR, and the payment you can make to see the payoff timeline and the true cost of carrying the balance.
Results
Months to debt-free
$0.00
At this payment, every month
That's about$0.00
Interest you'll pay$0.00
Total you'll pay$0.00
On a $5,000 balance at 24.99%, paying $150/month costs about $3,622 in interest. Paying $250/month cuts interest to roughly $1,560 — an extra $100 a month saves over $2,000.
Assumptions
Last checked: September 2026 · Country: United States
APR type: Fixed purchase APR, compounding monthly
Payments: The same amount every month, applied after interest
Excluded: New purchases, annual fees, late fees, penalty APR
Illustrative only. Minimum-payment formulas vary by issuer; your statement shows the exact payoff disclosure.
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Why minimum payments cost so much
Card issuers typically set minimums around 1–2% of the balance, which barely covers the monthly interest at a 25% APR. On a $5,000 balance, a $100 minimum might put only $0–$15 toward principal in the early months — the debt can take a decade and cost nearly as much in interest as the original balance. Any payment above the minimum attacks principal directly.
The two numbers that matter
Payoff time tells you how long the weight lasts; total interest tells you the price of the delay. Doubling your payment usually more than halves the interest because you starve the compounding early. If you're juggling two balances, the debt payoff calculator compares avalanche vs snowball payoff orders.
When the payment never ends
If your payment doesn't cover the monthly interest charge, the balance grows instead of shrinking — the calculator flags this. In that case the only fixes are a bigger payment, a lower rate (balance transfer or negotiation), or both.
Frequently asked questions
How is credit card interest calculated?
Most cards compound daily or monthly on the average daily balance. This calculator uses monthly compounding: each month, interest = balance × APR ÷ 12 is added, then your payment is subtracted.
How long to pay off $5,000 at 24.99% APR?
About 58 months (nearly 5 years) at $150/month, costing roughly $3,622 in interest. At $250/month it's about 27 months and $1,560 in interest.
Is it better to pay more than the minimum?
Almost always. Every dollar above the minimum goes straight to principal, which cuts both the payoff time and the total interest — often dramatically.
What APR do credit cards charge in 2026?
Average card APRs have sat in the low-to-mid 20s. New-card offers vary widely by credit score; your cardmember agreement has your exact rate.
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