Credit Card Payoff Calculator


Are you carrying forward your credit card balance every month? If yes, you must think of a way to pay off your debt quickly. It would be best if you planned for an efficient and quick workaround to a fixed monthly payment and did not stick to the minimum monthly statement balance, which would mean you are paying a higher amount as interest.

Our calculator for credit card payment helps you determine a suitable monthly payment that will ease you to clear your balance swiftly.

How Does It Work?

Understanding the basics is important. The calculator mentioned here has a few specific parameters, you key in the data for these parameters to find out the estimate.

Current Balance

This amount is the outstanding balance you have on your card, which you are trying to pay off.

Interest Rate

APR or the annual percentage rate is the interest of your credit card balances. You can avoid paying the APR if you pay your monthly installments in full. If you have never been a defaulter, you can negotiate with your banker to give you better rates.

Monthly Payment

The installments you plan to pay every month. You can decide on a fixed monthly payment, the higher the payment you make, the easier it is to finish off your balance on time.

Payoff Goals

This duration is what you require to complete your outstanding credit card balance. The lower it is, the easier it is to reach your goals faster. Therefore, you should try and complete your payments as soon as possible, so not much of your money goes off towards interest payment. You enter this parameter in months.

How To Calculate The Credit Card Payoff

Here are a few scenarios we use to calculate the payments using our credit card repayment calculator.

How To Payoff My Balance Soon?

Do you desire to clear your credit card dues as soon as possible? The first thing to remember is, increase your monthly payment value. Moreover, it is advisable to clear your balance soon, so that you don’t end up paying a lot towards interest.

As an illustration, if Frank desires to settle the dues of $7500 within 12 months, he should do a monthly EMIs of $666. That is to say, and he pays 6% towards interest and 94% towards the principal if the APR is 12%.

However, if he plans to pay off the balance in 24 months, he would likely pay $353 per month and pay 11% on interests.

How To Lower My Monthly Payment

High monthly payments can be a burden sometimes. You can lower your monthly payments to pay off your balance, but it is a good deal if you have a low APR. The reason being, with high APR rates and low monthly payments, your debt would seem never-ending.

For instance, Steve decides not to pay more than $150 per month for a balance of $6000. His APR is around 12%. Subsequently, he ends up paying $1700 surplus as interests and finishes off his debt in 52 months.

Therefore, plan your finances wisely. Develop a good strategy and stick to it.

Strategies That Work

Let’s explore a few strategies that would work to ease your debt.

Decide The Right Monthly Payment

Decide on the monthly EMIs you plan to pay. This planning is important in the first place as its one of the vital factors to reach your goal faster. I have seen a lot of people paying only the minimum payment, and therefore end up accumulating their debt. So, it’s wise to pay a little extra than your monthly minimum balance, and you adhere to it.

Prioritize Your Debts

Do you have a single credit card debt to pay off? Then, the repayment should be pretty straight forward. Try to make a monthly payment as heavy as you can, as much as you can.

But, if you have more than one credit card payment to make, prioritize your payments.

You can pay off multiple debts by the Avalanche Method or the Snowball Method.

Avalanche Method

You can figure out the highest APR debts and pay them off first. Check the interest rate section to find out the credit card, which has a high-interest rate and focus on closing that on top priority.

Snowball Method

You can finish off the low balance debts with little chunks of payment. Once you close the smaller debts, you can concentrate on the higher ones.

However, it is what you decide to do, so make a wiser plan as per your needs.

High/Low-Interest Rate Matters

With multiple credit cards, you have multiple APRs. You can pay off a higher-interest credit card balance with a low APR yielding credit card. In other words, you are paying off a debt with another credit card.

Generally speaking, most of the credit card companies offer you very low introductory APRs, as minimum as 0%. Use these intuitive offers to plan your finances. Therefore, this is another smart plan to think about and act.


In short, just a piece of advice, this hassle-free credit card repayment calculator, renders you a monthly EMI you owe to the banks. You can enter different combinations of monthly payments, interest rates, and the period for your current balance to find a better scheme to suit you best. Be proactive, use this calculator, pay your part, and get debt-free.

You can check our other calculators on this calculator website.