How credit card payoff works
Each month, interest is charged on your balance based on the card's APR. Your payment first covers that interest, and whatever is left reduces the principal. The higher your payment, the more goes to principal — so you pay off faster and pay far less interest overall.
Pay more than the minimum
Minimum payments are designed to keep you in debt for years. Even a modest increase in your monthly payment can cut the payoff time and total interest dramatically. Try raising the monthly payment above and watch the interest figure drop.
Frequently asked questions
What if my payment is too low?
If your monthly payment doesn't even cover the monthly interest, the balance never goes down. The calculator will warn you to increase it.
Does this include new purchases?
No. It assumes you stop adding new charges while paying it off.
Is my data saved?
No. Everything runs in your browser.