Credit Card Payoff Calculator
From balance, APR and monthly payment, compute the months, total paid and total interest to clear the debt.
Input Data
Results
At a glance:Declining-balance method: monthly interest = balance x APR/12; next balance = balance + interest - payment, repeated until zero; sum months, total paid, total interest. More paid monthly = shorter term and less interest. If payment ≤ first-month interest, the balance grows forever (tool flags it). WARNING: simplified model; actual terms vary by issuer. Education, not advice.
Formula
Monthly interest = balance × APR ÷ 12.
Next balance = balance + monthly interest − monthly payment.
Repeat monthly until balance ≤ 0; accumulate months, total paid and total interest.
If monthly payment ≤ first-month interest, the balance grows forever (no payoff).
$$B_{t+1} = B_{t} + B_{t}\times\dfrac{\text{APR}}{12} - \text{Payment}$$$$\text{Months} = \min\{\, t : B_{t} \le 0 \,\}, \quad \text{TotalPaid} = \text{Payment} \times \text{Months} - \text{last overpay}$$How to Use
- Enter the current balance.
- Enter the APR.
- Enter the monthly payment to see months and total interest.
FAQ
Why can't the calculator show payoff months?
When the monthly payment is ≤ the first month's interest, the balance grows instead of shrinking and interest accrues without limit — it can never be cleared. Raise the monthly payment above the interest to start reducing principal.
How long does paying only the minimum take?
HK minimum payment is typically 'all interest and fees + at least 1% of principal', or ~HK$50, whichever higher. Because it barely exceeds interest, principal falls extremely slowly — repayment can stretch decades with total interest multiple times principal. The HKMA example uses ~2.5% monthly (≈35% effective annual).
Which is better, the avalanche or snowball method?
Avalanche pays the highest-APR card first (minimum on others) — least total interest, most money-saved. Snowball pays the smallest-balance card first — faster 'card killed' wins, easier to stay motivated. Both beat paying only the minimum.
What are fast ways to pay off?
Pay more than the minimum, target high-APR/small-balance cards, consolidate multiple high-rate cards into one lower-rate personal loan (debt restructuring), or use a 0% balance-transfer promo. Watch fees, lock-in and post-promo rates when refinancing.
Why does my result differ from the bank statement?
This is a simplified model (fixed APR, on-time payments, no annual/late fees). Actual statements vary with rate changes, late penalties and minimum payments that adjust with the balance. Use the statement as the final word.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.