Credit Card Payoff Calculator Formula & How It Works
M = Balance × r / (1 − (1+r)^−n) | where r = APR ÷ 12 ÷ 100
- Payoff in n months requires payment M
- Interest saved = (Min payment × payoff months) − (M × n)
- Balance after k payments = Balance × (1+r)^k − M × ((1+r)^k − 1) / r
To pay off a credit card balance in a specific number of months, solve the standard amortization formula for the monthly payment M. The longer you give yourself, the lower the monthly payment but the more total interest you pay. This calculator shows the optimal balance between payoff speed and manageable payments.