How this calculator works
This reverses the usual payoff question. Instead of starting from a payment and asking how long the balance lasts, you pick a payoff period and the calculator finds the level monthly payment that clears the balance exactly at the end. Interest is charged on the opening balance each month at one twelfth of the APR, and no new purchases or fees are assumed. A shorter period raises the payment but cuts total interest, because the balance falls faster. The estimate is a planning figure; a real statement rounds the payment and may use a daily balance method.
Formula
i = APR / 12. n = chosen months. Payment A = P × i / (1 - (1 + i)^(-n)), or P/n when i = 0. Total paid = n × A. Total interest = n × A - P. First-month interest = P × i.
Worked example
A $5,000 balance at 19.99% cleared over 24 months needs $254.45 a month. The payments total $6,106.91, so interest is $1,106.91, and the first month alone carries $83.29 of interest. Stretching the same balance over 36 months lowers the payment but raises total interest.
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Frequently asked questions
What payment does the minimum require?
That depends on the issuer's minimum formula. Use the credit card calculator with the minimum method to model a percentage-based minimum payment.
Can I pick a payoff date instead of a number of months?
This page counts months from your next statement rather than from a calendar date, so leap days and statement cut-off dates do not change the arithmetic. Count the months to your target date and enter that.
Does the payment change if I keep spending?
Yes. New purchases increase the balance and extend payoff beyond the target. This model assumes the card is closed to new spending until the balance clears.
Why is the total exactly divisible into equal payments?
The payment is calculated to retire the balance precisely over the chosen months. In practice the issuer rounds to cents, so the last payment may differ by a few cents.