Credit Card Payoff Calculator

See how many months it will take to pay off your credit card debt and how much you will pay in interest, based on your balance, the rate and the payment you make each month.

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How does the credit card payoff calculator work?

When you carry a balance on your card, every month you pay interest on what you owe. This calculator takes your current balance, the Annual Nominal Rate (APR) and the fixed payment you plan to make each month, and works out how many months it will take to be debt-free and how much you will have paid in interest.

Payoff time formula

r = APR / 100 / 12
n = -ln(1 - (Balance × r) / Payment) / ln(1 + r)

Where r is the monthly rate and n the number of months to clear the debt. If the payment does not exceed the monthly interest, the debt never clears.

Worked example

You have a balance of 5,000,000, a 60% APR (5% monthly) and you pay 500,000 per month:

  • First month's interest = 5,000,000 × 0.05 = 250,000
  • Since 500,000 beats that interest, the debt drops each month
  • Time to clear it ≈ 15 months, paying around 1,300,000 in interest alone

If you only paid 260,000 a month, it would take several years and the interest would exceed the original balance itself.

Strategies to get out of debt

  • Pay more than the minimum: even a little more attacks the principal and cuts future interest.
  • Stop credit purchases: do not pile on new balance while you pay off the current one.
  • Attack the highest rate first: if you have several cards, prioritize the one with the highest APR (avalanche method).
  • Consider consolidating: a personal loan with a lower rate can cut the total cost and give you a clear end date.

Frequently asked questions about credit card debt

Using the monthly rate (APR/12), the balance and a fixed payment, the amortization formula applies: n = -ln(1 - (balance × r) / payment) / ln(1 + r). The result is the number of months needed to reach a zero balance while always paying the same amount.

Because the minimum payment barely covers the interest and a very small portion of the principal. Since card rates in Latin America are usually very high, the debt drags on for years and you end up paying several times the original amount in interest.

If your monthly payment does not exceed the interest the balance generates each month, the debt never clears: it grows or stays the same. The calculator warns you of this case and tells you the minimum payment you must beat to start reducing principal.

Often yes. If you get a personal loan with a rate lower than the card, you can consolidate the debt, lower the total cost and have a fixed payment with a clear end date. Always compare the rate and total cost before deciding.

Pay more than the minimum each month, avoid new credit purchases while you carry a balance, prioritize the card with the highest rate and consider consolidating if you find a lower rate. Increasing the monthly payment dramatically reduces total interest.