How this is calculated
each month: balance = balance × (1 + APR ÷ 12) − payment; count months until balance ≤ 0
Each month your card charges one-twelfth of the APR on the remaining balance, then your payment lands. The simulation runs exactly that loop and counts the months to zero. At typical card rates the first months are sobering: on a $5,000 balance at 24%, a $200 payment sends $100 to interest and only $100 to the actual debt.
This is why minimum payments are a trap by design. Minimums are usually set near the interest-plus-a-sliver level, keeping you paying for a decade or more. The escape is asymmetric in your favor though: because every extra dollar goes entirely to principal, raising a $200 payment to $300 doesn't cut the timeline by a third — it usually cuts it by half or better.
If the balance is large, two structural moves beat willpower: a 0% balance-transfer card (watch the transfer fee and the promo deadline) or a consolidation loan at personal-loan rates, which run far below card APRs. Then this calculator becomes your countdown clock instead of your warning label.
Frequently asked questions
Why does it say 'Never'?
Your payment is smaller than the monthly interest, so the balance grows every month despite paying. The fix threshold is shown — anything above the monthly interest starts shrinking the debt.
Should I pay off the card or invest?
A card at 24% is a guaranteed 24% return when paid off — no investment reliably beats that. High-interest debt first is one of the few near-universal rules in personal finance.
Do new purchases change the math?
Yes — the simulation assumes no new spending. Continuing to use the card while paying it down is running up the down escalator; many people freeze the card until it's cleared.
What about the snowball vs avalanche methods?
With multiple debts: avalanche (highest APR first) minimizes total interest; snowball (smallest balance first) maximizes motivation wins. Run this calculator per card to see each timeline.