Two different repayment questions
Time to Pay Off holds your monthly payment constant and projects the remaining balance. Required Payment starts with a target of 1 to 600 months and estimates the payment needed. After clicking Calculate, results respond to edits; switching modes clears them.
The calculation you can reproduce
Let B be the opening balance, r = APR / 1200, and n the target number of monthly payments. Required payment is B × r / (1 − (1 + r)⁻ⁿ). At zero interest it is B / n. The amount rounds upward to cents; the last payment is limited to principal plus that month’s interest.
For each month, interest equals opening balance × r. Subtract the payment after adding interest, then repeat. On $5,000 at 22.99% APR, a fixed $200 payment takes 35 months and costs $1,871.08 interest; the final payment is about $71.08. These are illustrative modeled amounts, not quoted loan terms.
When the minimum comparison is unavailable
The comparison uses the greater of 2% of the balance and $25. It does not add interest on top of that percentage. This is not a universal issuer formula. For the default balance and APR, this scenario still owes money after the 600-month limit, so the tool does not invent a payoff date or lifetime savings.
If the selected payment is at or below that month’s interest, the balance cannot decline under the fixed assumptions. Zero starting debt is treated separately as already repaid. A remaining balance at the calculation limit is not treated as paid off.
Use the estimate alongside the card agreement
This model uses a constant APR / 12, monthly end-of-period payments, no new charges and no fees. Actual cards can use daily balances and separate APRs for different transactions. The CFPB explanation of card interest describes those distinctions. Check your statement’s minimum due, due date and repayment disclosure rather than treating this estimate as payment instructions.
A lower promotional rate must be compared with its fees and expiry date. A payoff plan also needs room for necessary expenses; a multiple of the minimum payment is not a universal affordability rule. This calculator does not model changing rates, mixed balances or refinancing fees.
Frequently Asked Questions
What does Required Payment calculate?
A constant end-of-month payment to repay one balance at a constant APR within 1 to 600 months. The annuity payment rounds upward to cents, and the final payment is capped at the amount owed. It does not assess whether that payment fits your budget.
How much interest does the default example charge?
Under this monthly model, $5,000 at 22.99% APR with $200 payments takes 35 months and incurs $1,871.08 interest. The last payment is about $71.08. Actual daily interest and fees can produce a different statement result.
Is 2% or $25 the minimum for every card?
No. It is only this tool’s comparison assumption. Some agreements add interest, fees or overdue amounts to other minimum formulas. Read the actual minimum due on your statement.
What if a scenario does not repay?
A payment at or below monthly interest does not reduce the balance. A scenario still owing money after 600 months has reached the model limit. Neither gets an estimated payoff date or a lifetime savings comparison.
Are my entries submitted to a bank?
These calculations run in the page and do not connect to a bank or submit payments. This is not a promise that the entire website has no analytics or other network activity.
Can I model multiple APRs or a balance transfer?
This tool uses one constant APR and excludes fees, new charges and promotional changes. Separate balances and changed terms require a more detailed calculation. Use it as an estimate, not an issuer statement.