Your result
What your result means
At 22.9% APR, a $6,000 balance builds about $114.50 of interest in the first month. Paying $250 every month with no new charges clears it in 2 years 9 months (33 payments), costing $2,100.77 in interest and $8,100.77 in total. To be debt-free in three years you would need $231.95 a month; in two years, $313.94.
The math
Formula and sources
Each month: interest = balance × APR ÷ 12
balance = balance + interest − payment
Payment for N months = B × r ÷ (1 − (1 + r)^−N)- B
- balance
- r
- APR ÷ 12
- N
- months
Card issuers usually compute interest on the average daily balance, so real statements can differ by a few dollars. The payment must be larger than the monthly interest or the balance never falls.
Sources we checked this against
- 1What you need to know: New credit card rules (sample minimum-payment disclosure)Federal Reserve Board · federalreserve.gov
- 2What is a credit card interest rate? What does APR mean?Consumer Financial Protection Bureau · consumerfinance.gov
- 3PMT function (payment formula and examples)Microsoft Support · support.microsoft.com
Formula last checked 2026-11-04. Found an error? Tell us and we will fix it.
Step by step
Two worked examples
Federal Reserve sample statement
Time to pay off
3 years 1 month
- Card balance
- $3,000
- APR
- 14.4%
- Monthly payment
- $103
The Fed’s sample disclosure says paying $103 a month on $3,000 at 14.4% takes 3 years and $3,712 in total. We get 3 years 1 month (36 full payments plus a small final one) and $3,713.28.
Same card, $150 a month
Time to pay off
1 year 11 months
- Card balance
- $3,000
- APR
- 14.4%
- Monthly payment
- $150
Raising the payment to $150 shortens payoff to 1 year 11 months and cuts interest to $451.01.
| Result | Example 1 | Example 2 |
|---|---|---|
| Time to pay off | 3 years 1 month | 1 year 11 months |
| Total interest | $713.28 | $451.01 |
| Total paid | $3,713.28 | $3,451.01 |
Questions
Frequently asked questions
Why does paying only the minimum take so long?
Minimum payments are often around 1% to 3% of the balance plus interest, so they shrink as the balance shrinks. Most of each payment goes to interest. A fixed payment that doesn’t fall over time is far faster.
Should I pay off the highest APR or the smallest balance first?
Paying the highest APR first (the avalanche method) costs the least interest. Paying the smallest balance first (the snowball) can be more motivating. Either works if you keep paying a fixed total.
Would a balance transfer help?
A 0% transfer offer can save interest if you clear the balance before the promotion ends and the transfer fee (often 3% to 5%) is smaller than the interest saved. Set the APR to 0 here and add the fee to the balance to compare.