Payment below interest
A 5,000 balance at 24% APR generates 100 of first-month interest in this monthly model. A payment below 100 allows the balance to grow; exactly 100 never reduces it.
A simplified monthly payoff scenario with no new charges. APR ÷ 12 is charged before a fixed month-end payment; many actual card accounts use daily balances instead.
36 monthsYour payment: payoff time
USD 2,000.56Your payment: interest modeled
USD 264.36Payment for target (round up)
USD 1,344.53Target-plan interest
Monthly schedule
Calculated at full precision; displayed amounts are rounded. CSV includes every period with six decimal places.
| Month | Opening | Interest / growth | Payment | Closing |
|---|---|---|---|---|
| 1 | USD 5,000.00 | USD 100.00 | USD 200.00 | USD 4,900.00 |
| 2 | USD 4,900.00 | USD 98.00 | USD 200.00 | USD 4,798.00 |
| 3 | USD 4,798.00 | USD 95.96 | USD 200.00 | USD 4,693.96 |
| 4 | USD 4,693.96 | USD 93.88 | USD 200.00 | USD 4,587.84 |
| 5 | USD 4,587.84 | USD 91.76 | USD 200.00 | USD 4,479.60 |
| 6 | USD 4,479.60 | USD 89.59 | USD 200.00 | USD 4,369.19 |
| 7 | USD 4,369.19 | USD 87.38 | USD 200.00 | USD 4,256.57 |
| 8 | USD 4,256.57 | USD 85.13 | USD 200.00 | USD 4,141.70 |
| 9 | USD 4,141.70 | USD 82.83 | USD 200.00 | USD 4,024.54 |
| 10 | USD 4,024.54 | USD 80.49 | USD 200.00 | USD 3,905.03 |
| 11 | USD 3,905.03 | USD 78.10 | USD 200.00 | USD 3,783.13 |
| 12 | USD 3,783.13 | USD 75.66 | USD 200.00 | USD 3,658.79 |
A displayed zero interest total for a nonreducing payment means no schedule was simulated, not that interest stops. Minimum-payment formulas, daily interest, grace periods, promotional rate changes, fees, and multiple APR categories are excluded. The target calculation uses an exact unrounded payment internally.
Your inputs and calculations stay in this browser. No live financial data is fetched; amounts use your selected USD or GBP labels.
How to use the Credit Card Payoff Calculator
- 01
Enter one card balance, a fixed APR, and the same planned payment each month.
- 02
Set an alternative target payoff period in whole months.
- 03
Compare the plans and download the fixed-payment schedule if the balance can decline.
Examples
A zero-rate balance
At 0% APR, a 1,200 balance with a 100 monthly payment repays in 12 months. A target of six months instead requires 200 monthly.
A simplified statement cycle
Interest is charged on the opening balance at APR divided by 1,200, then the payment is applied at month end. This makes the arithmetic easy to inspect. Actual cards can accrue interest using daily balances and can apply separate rates to purchases, transfers, and cash advances.
No payoff versus a long payoff
If payment does not exceed first-month interest, the tool explains why there is no declining payoff schedule. If payment reduces principal but is very small, the simulation stops after 1,200 months and shows the remaining balance. A capped horizon is not a promise of eventual payoff under real account terms.
Using the target comparison
The alternative plan solves for an equal monthly payment over your chosen number of months. Its displayed payment is rounded upward to a cent, while its total interest uses the exact unrounded payment. The comparison assumes the balance and rate stay unchanged and no new spending occurs.
What to know
- No daily balance method, grace periods, promotional changes, fees, new charges, or multiple APR buckets.
- Schedules stop at 1,200 months and use full precision rather than issuer-specific rounding.
Common questions
Does it use my card’s minimum-payment rule?
No. Enter a fixed amount yourself. A minimum that falls with the balance is a different repayment path.
What about introductory 0% rates?
A single rate applies to the whole simulation. The tool does not switch to a later rate or apply deferred interest.
Why is there no schedule when my payment is too low?
The balance would remain flat or grow. The calculator reports that condition immediately rather than inventing a payoff date; a zero interest total then means no schedule was simulated.