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Finance

Credit Card Payoff Calculator

See how long a credit card balance takes to clear and what the interest costs at your payment level.

Your numbers

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Result

Time to clear the balance 2 yrs 9 mo
Total interest paid $3,005
Total paid $11,505
Interest in the first month $162.21
Paying 350 a month clears it in 2 yrs 9 mo and costs $3,005 in interest.

Assumes a fixed payment and no new spending on the card. Adding purchases while paying it down extends the timeline substantially.

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Questions

About this calculator

Why does the minimum payment take so long?

Minimums are typically set at 1–3% of the balance, barely above the interest charge. Most of each payment covers interest, so the principal falls very slowly, often taking decades.

Is paying off a card a good use of business cash?

At typical card rates it is one of the best guaranteed returns available. Clearing a 22.9% balance is equivalent to earning 22.9% risk-free.

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Numbers are only half the job

Good margins still need customers finding you and systems that hold it together. BDEVY covers the marketing, technology and automation side.