Revolving Credit Card Payoff Calculator
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Reviewed by Calculator Editorial Team
Paying off a revolving credit card balance can take years if you only make minimum payments. Use this calculator to determine how long it will take to pay off your balance with interest, and explore strategies to pay it off faster.
How to Use This Calculator
To use the revolving credit card payoff calculator:
- Enter your current credit card balance in the "Current Balance" field.
- Enter your credit card's annual percentage rate (APR) in the "APR" field.
- Enter the minimum monthly payment amount in the "Minimum Monthly Payment" field.
- Click the "Calculate" button to see how long it will take to pay off your balance with interest.
The calculator will display the total time required to pay off the balance, the total interest paid, and a chart showing the balance over time.
How the Calculator Works
The revolving credit card payoff calculator uses the following formula to determine how long it will take to pay off your balance with interest:
Formula
Let:
- B = Current balance
- R = Monthly interest rate (APR/12/100)
- P = Minimum monthly payment
- N = Number of months to pay off balance
The formula for the number of months to pay off the balance is:
N = -log(1 - (B * R) / P) / log(1 + R)
The calculator assumes you make the minimum payment each month and that the interest is calculated on the remaining balance each month. The calculator does not account for additional payments or changes to the interest rate.
Important Note
This calculator provides an estimate of how long it will take to pay off your balance with interest. The actual time may vary depending on your payment history and the credit card issuer's specific terms and conditions.
Example Calculation
Suppose you have a credit card balance of $5,000 with an APR of 18% and a minimum monthly payment of $200. Using the calculator, you would find that it would take approximately 58 months (4 years and 10 months) to pay off the balance with interest.
| Month | Starting Balance | Interest | Payment | Ending Balance |
|---|---|---|---|---|
| 1 | $5,000.00 | $75.00 | $200.00 | $4,875.00 |
| 2 | $4,875.00 | $73.13 | $200.00 | $4,748.13 |
| 3 | $4,748.13 | $70.80 | $200.00 | $4,617.93 |
| ... | ... | ... | ... | ... |
| 58 | $200.00 | $3.00 | $200.00 | $0.00 |
As you can see, making only the minimum payment results in paying a significant amount of interest over time. Consider making additional payments or transferring the balance to a card with a lower interest rate to pay off the balance faster.
Frequently Asked Questions
How accurate is the revolving credit card payoff calculator?
The calculator provides an estimate of how long it will take to pay off your balance with interest. The actual time may vary depending on your payment history and the credit card issuer's specific terms and conditions.
What factors affect how long it takes to pay off a revolving credit card balance?
The factors that affect how long it takes to pay off a revolving credit card balance include the current balance, the annual percentage rate (APR), the minimum monthly payment, and any additional payments you make.
How can I pay off my revolving credit card balance faster?
You can pay off your revolving credit card balance faster by making additional payments, transferring the balance to a card with a lower interest rate, or using a balance transfer promotion.
What is the difference between a revolving credit card and a non-revolving credit card?
A revolving credit card allows you to carry a balance from month to month, while a non-revolving credit card requires you to pay off the balance in full each month. Revolving credit cards typically have higher interest rates than non-revolving credit cards.