How credit card interest works
Your card’s APR (annual percentage rate) is the yearly price of borrowing. You pay it only on the part of your balance you don’t clear by the due date. If you pay your full statement balance every month, most cards charge no interest on purchases at all.
Carry a balance, though, and interest is added to what you owe, then charged again the next month on the bigger total. At a 22% APR that’s roughly 1.8% of your balance every month. It doesn’t sound like much, but on a $5,000 balance it’s over $90 a month before you’ve paid down a single dollar.
Why minimum payments take so long
The minimum payment is designed to keep your account in good standing, not to get you out of debt. A common formula is the month’s interest plus about 1% of the balance, so most of each minimum payment goes straight to interest. As the balance slowly falls, the minimum falls with it, and the debt drags on for years.
That’s why the calculator compares your plan with paying only the minimum. The gap between the two lines on the chart is the time and money a fixed, higher payment saves you.
Worked example
Say you owe $5,000 on a card with a 22% APR. In the first month alone, about $92 of interest is added.
- Paying only the minimum (about $142 at first, then less as the balance falls) takes 18 years 10 months and costs $7,947 in interest.
- Paying $200 every month clears it in 2 years 10 months with $1,750 of interest.
Keeping the payment fixed instead of letting it shrink with the minimum saves $6,197 and gets you out of debt 16 years sooner.
How much a month to pay off a credit card in 1, 2 or 3 years
The monthly payment that clears a balance by a set date, at a 22% APR, assuming nothing new goes on the card. That’s close to the average rate on accounts that were charged interest: 22.15% in May 2026, according to the Federal Reserve. Below each payment is the interest it costs in total.
| Balance | In 1 year | In 2 years | In 3 years |
|---|---|---|---|
| $2,000 | $187.19 a month$246 interest | $103.76 a month$490 interest | $76.39 a month$750 interest |
| $5,000 | $467.98 a month$616 interest | $259.40 a month$1,225 interest | $190.96 a month$1,874 interest |
| $10,000 | $935.95 a month$1,231 interest | $518.79 a month$2,451 interest | $381.91 a month$3,748 interest |
Your statement shows the same kind of figure for your own card and rate: card issuers have to print the monthly payment that would clear the balance in three years. To try another date, balance or rate, choose “Payment I need” in the calculator above.
Ways to pay it off faster
- Pay a fixed amount, not the minimum. Pick a payment you can keep up and stick to it, even as the minimum shrinks. Try adding $25 or $50 in the calculator to see what it does to the payoff date.
- Stop adding to the balance. New purchases on a card you’re paying down undo your progress. Use a debit card or cash for everyday spending until the balance is gone.
- Target the highest APR first. With several cards, pay the minimum on each and put every extra dollar toward the card with the highest rate. That costs the least interest overall.
- Look at a lower rate. A 0% balance transfer or a lower-rate personal loan can cut the interest, as long as you check the fees and clear the balance before any promotional rate ends. You can also simply ask your card issuer for a lower APR.
- Get free help if you’re struggling. Nonprofit credit counselors can help you make a budget and may be able to set up a repayment plan with your card issuers.