Estimate a monthly credit card payment for a chosen payoff period. Enter the balance in USD, fixed annual percentage rate (APR), and whole number of months. The model uses monthly interest, no new charges or fees, a regular payment rounded up to cents, and an adjusted final payment.

Fixed APR, monthly interest and end-of-month payments; no new charges or fees.

A whole number, up to 1,200 months.

Credit Card Formula

The following formula estimates one month of interest on an unchanged credit card balance using APR divided by 12. It does not calculate the amortized monthly payment needed to pay off the balance; the calculator above calculates that payment for your chosen payoff period.

I = B ร— APR / 12 / 100
  • Where I is the monthly interest
  • B is the balance on the card
  • APR is the annual interest rate (%)

To calculate the credit card interest, multiply the balance by the annual interest rate (%), then divide by 1200.

Credit Card Definition

Credit cards typically, if not always, come with an interest rate, which is the premium you pay for “borrowing” money from the lender.

For credit cards, the interest rate is normally expressed as an annual percentage rate (APR). Dividing APR by 12 gives the monthly rate used in this simplified estimate. Actual card interest can differ because issuers may calculate interest daily and balances can change during the billing cycle.

For example, an unchanged $400.00 balance at 12% APR has estimated monthly interest of $4.00 using this simplified formula: $400.00 ร— 12 / 12 / 100 = $4.00.

Credit Card Calculator Payoff

Understanding your repayment options can help you plan a credit card payoff. Compare the estimate with your card statement and agreement.

Method 1) Pay the entire balance of the credit card every single month on time. If your card offers a purchase grace period and you qualify for it, paying the full statement balance by the due date can avoid interest on new purchases. This does not guarantee a particular credit score, and cash advances or other balances may have different rules. With that said, it’s not always the most feasible for people with variable incomes.

Method 2) Pay the maximum amount you can afford each month. This will reduce the total interest you end up paying while also allowing you to pay for other things in life.

Method 3) Pay at least the required minimum payment by its due date. Paying only the minimum can extend repayment and increase interest costs; the amount depends on the balance, APR and issuer rules.

Credit Card Calculator Payment

Credit Card Calculator screenshot