Credit card payoff calculator

How this calculator works

This calculator runs your card balance forward one month at a time, two ways. Each month, interest is the balance times one twelfth of the card's yearly rate. Enter the rate shown on your own card statement. On the minimum path, the payment is your minimum share of the balance plus that month's interest, but never less than the minimum payment floor. On the fixed path, you pay the same amount every month. Each path stops when the balance reaches zero, and the tool totals the months and the interest.

Assumptions: no new purchases, fees or rate changes. The minimum payment formula here is one common version, and your card may use a different one, so check your statement. If a payment does not cover the month's interest, the balance would never fall, and the tool says so. Each run stops after 100 years.

How this affects buying a home: lenders count the minimum payment shown on your credit report in your debt-to-income ratio, even if you pay more. A lower balance usually means a lower minimum and lower credit utilization, which can help your scores. On the other hand, using your down payment or reserve savings to pay off cards can leave you short at closing. A loan officer can help you weigh which to do first.

Example: enter a $5,000 balance and the rate from your statement, then compare the minimum path with a fixed $200 a month.

Related: Credit utilization what-if · Debt-free date calculator · Debt-to-income calculator