Credit Card Payoff Calculator

Each month the balance grows by the APR divided by 12, then your payment comes off what is left. There is no neat closed form worth trusting here, so this walks the balance month by month until it reaches zero, which is also exactly what the card issuer does.

Why does the balance barely move at first?

Because interest is charged before your payment lands. On a 6,000 dollar balance at 22.9 percent, the first month costs about 115 dollars in interest, so a 250 dollar payment only reduces what you owe by 135.

What happens if I only pay the minimum?

A minimum is usually 1 to 3 percent of the balance, which is barely above the interest. That is what turns a few thousand dollars into a decade of payments and more interest than the original purchase.

Is a balance transfer worth it?

Often, if you actually clear it during the zero-percent window. Compare the transfer fee, typically 3 to 5 percent, against the interest shown here. If the interest is larger, the transfer wins.