Credit card payoff
How to pay off $20,000 of credit card debt at 22% APR
Balance over time
Payment to be debt-free by a date
| Debt-free in | Monthly payment | Total interest | Total paid |
|---|---|---|---|
| 1 year | $1,872 | $2,463 | $22,463 |
| 2 years | $1,038 | $4,899 | $24,899 |
| 3 years | $764 | $7,494 | $27,494 |
| 4 years | $631 | $10,221 | $30,221 |
| 5 years | $553 | $13,113 | $33,113 |
What each monthly payment gets you
| Monthly payment | Time to pay off | Total interest |
|---|---|---|
| Minimum (starts at $567) | 30 years, 8 months | $35,600 |
| $600 | 4 years, 4 months | $11,192 |
| $800 | 2 years, 10 months | $7,000 |
| $1,000 | 2 years, 2 months | $5,143 |
| $1,500 | 1 year, 4 months | $3,147 |
| $2,000 | 1 year | $2,298 |
Minimum assumed as 1% of the balance plus that month's interest, at least $25. It shrinks as the balance shrinks, which is why it takes so long.
Options that could lower the cost
0% balance transfer
Moving $20,000 to a card with 0% for 18 months and a 3% fee ($600), then paying the same $764 a month, could clear it in 2 years, 4 months for about $1,302 in fee plus interest, compared with $7,494 staying at 22%. That assumes you qualify, make no new charges, and the rate after the promo is the same 22%.
Consolidation loan
For illustration, a 36-month loan at 12% APR on $20,000 would be about $665 a month with $3,909 of interest, versus $7,494 over the same 3 years at 22%. Real loan rates depend on your credit and may include origination fees.
Pay a fixed amount, not the minimum
Choosing a fixed payment and keeping it as the balance falls is the simplest change. Try your exact numbers in the Credit Card Payoff Calculator, or plan several cards with the Debt Avalanche Calculator.
This tool provides educational estimates only and is not financial advice. Estimated scores are not your actual FICO® or VantageScore®. Not affiliated with Experian, Equifax, or TransUnion.
Same balance, other APRs
Same APR, other balances
Frequently asked questions
How much interest does $20,000 at 22% APR cost per month?
About $367 in the first month (22% divided by 12, times the balance). That amount shrinks as the balance goes down.
What payment pays off $20,000 in 3 years?
About $764 a month at 22% APR, with roughly $7,494 of interest in total, assuming no new charges.
How long does it take with only minimum payments?
With a minimum of 1% of the balance plus interest (at least $25), it could take 30 years, 8 months and cost about $35,600 in interest. Your card's minimum formula may differ.
Is a balance transfer worth it here?
With a 3% fee and 0% for 18 months, paying $764 a month could cost about $1,302 (fee plus interest) versus $7,494 staying at 22%. It only helps if you qualify and avoid new charges.