Category
Finance
Credit Card Payoff Calculator
Compare minimum payment rules versus fixed payments for payoff time and interest
Estimated time
2 min
Credit Card Inputs
Compare the issuer minimum payment rule with your planned fixed payment amount.
$
Use the annual percentage rate from your statement. The calculator converts this to monthly interest.
%
Issuer minimum due is often a percentage of current balance. This value is combined with the minimum floor rule.
% of balance
Lowest dollar minimum payment your issuer requires, even when the percent rule gives a smaller amount.
$
Planned monthly card payment. If this is below the required minimum, the model uses the minimum for that month.
$
Fixed payment is your target monthly payment. If this is below the required minimum due, the model uses the required minimum for that month.
Minimum vs Fixed Comparison
Side-by-side payoff and interest estimates from the same starting balance and APR.
| Metric | Minimum Payment Rule | Fixed Payment |
|---|---|---|
| Month 1 payment | $0.00 | $0.00 |
| Payoff time | - | - |
| Payoff date | - | - |
| Total interest | $0.00 | $0.00 |
| Total paid | $0.00 | $0.00 |
Fixed payment is above the minimum due in month 1.
Timeline Summary
Milestones will update as soon as you enter balance and payment values.
| Milestone | Minimum Rule | Fixed Payment | Difference |
|---|---|---|---|
| Enter inputs to generate the payoff timeline. | |||
How This Calculator Works
The model runs monthly payoff simulations from your current balance and APR under two scenarios: paying only the minimum due versus paying your fixed amount each month. For fixed payments, card minimums are still enforced, so the monthly payment can never drop below the minimum due.
Payoff time, payoff date, and total interest are compared directly across both scenarios. The timeline summary shows key balance milestones so you can see how quickly each approach reduces principal.
Minimum Payment Rule
Min_t = max(B_t * p_min, Floor); Fixed payment uses the greater of the issuer minimum or your chosen target.
Min_t- minimum due in month t from your minimum-payment rule
B_t- card balance at the start of month t
p_min- minimum payment percent (as decimal)
Floor- minimum payment dollar floor
Fixed- target fixed payment you choose each month
Balance Payoff Formula
B_(t+1) = B_t + Interest_t - Pay_t; Interest Savings = minimum-plan interest - fixed-plan interest
r- monthly rate (APR / 12)
Interest_t- interest charged in month t
Pay_t- payment made in month t after minimum/fixed rule
B_(t+1)- next-month balance after interest and payment
Interest Savings- total minimum-plan interest minus total fixed-plan interest
- APR is treated as fixed and converted to monthly rate by APR / 12.
- Payments are modeled monthly with interest added before payment is applied.
- No new purchases, fees, penalties, or rate changes are included.
- Results are estimates and should be used for planning, not issuer billing reconciliation.
- The model horizon is capped at 1,200 months (100 years) to prevent infinite simulations.
Frequently Asked Questions
Why can fixed payment be different from what I enter?
Credit cards still require at least the minimum due. If your fixed target is below the minimum due, this model uses the required minimum for that month.
What if payoff is not reached?
If payments are too low relative to monthly interest, balance may not decline. Increase fixed payment or adjust the minimum rule assumptions.
Does this include fees or changing APRs?
No. The calculator assumes a constant APR and does not include late fees, annual fees, promo periods, or new purchases.
Is payment timing exact to my statement cycle?
No. This is a monthly planning model. Your issuer statement timing and daily compounding can create small differences.
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