Calculate exactly how many months it will take to eliminate your credit card debt, see how extra monthly payments save thousands in interest, and compare potential 0% APR balance transfer savings.
Credit card payoff timelines are computed using the logarithmic revolving debt amortization equation:
Where B is current balance, r is monthly interest rate (APR / 12), and P is fixed monthly payment.
• Payment Feasibility Constraint: If your monthly payment P is less than or equal to monthly interest accrual (r × B), the debt will never be paid off (infinite timeline).
• 0% Balance Transfer Calculation: Net savings equal total interest paid under current APR minus the upfront transfer fee (typically 3%–5% of the transferred balance).
• Worked Example: A $5,000 balance at 22.0% APR paid at $250/month requires 26 months and costs $1,348 in total interest ($6,348 total paid). Transferring to an 18-month 0% APR card with a 3% fee ($150) stops interest charges, allowing the debt to be paid in 21 months and saving $1,198 in net interest.
Minimum payments are designed by card issuers to cover interest plus just 1% to 2% of principal. As your balance drops, your minimum payment drops with it, stretching repayment out over 15 to 25 years and costing several times your original purchase in interest charges.
You apply for a credit card offering a 0% introductory APR on balance transfers (usually 15 to 21 months). Upon approval, your debt is transferred to the new card. You pay an upfront transfer fee (typically 3% to 5%), but 100% of your ongoing monthly payment pays down principal without accruing finance charges during the promotional period.
Most top-tier 0% balance transfer credit cards require good to excellent credit (typically a FICO score of 670 or higher). If your score is lower, consider a fixed-rate personal debt consolidation loan or credit union hardship program.
A 0% balance transfer is an interest-free credit card promo with a strict 12–21 month expiration window. A debt consolidation loan is an installment loan with a fixed APR (typically 8%–15%) and a fixed 3 to 5-year repayment schedule, making it safer for larger balances that cannot be fully paid within 18 months.
Add our credit card debt payoff & balance transfer savings calculator to your personal finance site.