How payoff time is estimated
Each month adds interest on the remaining balance, then subtracts the fixed payment. The final month pays only the leftover principal and interest instead of a full extra payment. The model assumes no new charges.
Monthly rate = annual rate ÷ 12
Interest this month = remaining balance × monthly rate
Remaining balance = remaining balance + interest − payment
Total paid = original balance + total interest
Interest this month = remaining balance × monthly rate
Remaining balance = remaining balance + interest − payment
Total paid = original balance + total interest
Example
An $8,000 balance at 22% with a $250 monthly payment and no new spending takes longer than a zero-interest payoff because each month adds interest before the payment is applied. If the payment is not larger than the first month’s interest, the balance does not decline.
Why a statement can differ
Issuers may use daily interest, changing minimums, late fees, annual fees, and different posting dates. This page is a fixed monthly-rate planning model, not a copy of a card statement.