Credit card payoff calculator and tips for tackling debt

A credit card payoff calculator—like the one at the end of this article—can provide you with a possible timeline for paying off your credit card debt. 

To get started, simply input a few pieces of information into the calculator. Then you can get your estimated timeline based on either monthly payment amount or number of months until payoff.

What you’ll learn:

• Using a credit card payoff calculator can help you understand how long it may take to pay off your credit card debt.

• To use the calculator at the end of this article, you’ll need your card’s current balance, annual percentage rate (APR) and annual fee, if there is one.

• With a time frame for paying off the debt, you can estimate the amount of your monthly payments. 

• The Consumer Financial Protection Bureau (CFPB) recommends the debt snowball and debt avalanche payoff methods.

A credit card debt payoff calculator works by computing an estimated timeline for paying off your credit card debt. 

Here are key pieces of information you might need to use a credit card debt payoff calculator:

• Credit card balance: This refers to the amount you owe on a credit card. Inputting your current balance into the calculator will account for everything you owe on the card. It may help to know that your current balance is different from your statement balance, which is based on the current billing cycle.

• APR: APR refers to the yearly interest charged on a credit card. A credit card can have multiple APRs. For example, purchases may have a different APR than cash advances do. Cards sometimes also offer a special introductory APR, which is a lower-than-normal promotional interest rate offered to new cardholders.

• Annual fee: Some credit cards charge an annual fee. This is the amount you’re charged per year for having the card.

A credit card payoff calculator does the math for you. But you’ll first need to collect certain information from your credit card statement, including your current balance, APR and annual fee.

The timeline for paying off credit card debt can depend on your monthly payment amounts, the card’s interest rate and whether the card has an annual fee. 

Based on calculations from the calculator on this page, you can compare a few scenarios. Each is based on a credit card account with a $2,000 balance and a 20% APR:

• A $100 monthly payment with no annual fee could eliminate the debt in about 25 months.

• A $100 monthly payment with a $100 annual fee could eliminate the debt in about 29 months.

• A $300 monthly payment with a $100 annual fee could eliminate the debt in about eight months.

The CFPB recommends two strategies to help reduce debt:

• Debt avalanche method: The CFPB refers to this as the “high interest rate method.” It involves identifying debts with the highest interest rates and paying off those first. When you use the debt avalanche method, it’s important to try and keep up with the minimum payments on your lower-interest-rate debts as well.

• Debt snowball method: With the debt snowball method, you’ll make minimum payments on larger debts while using the money that’s freed up to eliminate your smaller debts. Once you pay off an account, you can move on to the next smallest amount. This creates the “snowball of payments” referenced in the method’s name.

As part of using either of these methods, you might consider consolidating your credit card debt. This could help simplify your payments and lower your interest rate.

According to the CFPB, it’s best to pay credit card balances in full each month. That’s because  you may have to pay interest if you carry a balance. Plus, a higher balance might increase your credit utilization ratio, which affects your credit scores.

If you can’t pay off your debt each month, you may want to make your minimum monthly payment on time when possible. This is the lowest amount you can pay each month for your account to remain in good standing. Plus, paying at least the minimum on time every month can help you avoid penalties and late fees.

To take advantage of the debt payoff calculator on this page, you’ll have to enter your current balance, APR and annual fee. You can then enter either your preferred monthly payment amount or the time frame in which you want to pay off the debt. This calculator works for cards from any credit card issuer—not just Capital One. 

Once you have your results, you can explore ways to begin paying down or consolidating your credit card debt. If you decide to consolidate your debt, a balance transfer credit card with a low introductory APR might be a good fit. You can check whether you’re pre-approved for a Capital One card with no harm to your credit scores. It’s quick and only requires some basic information.