In short
Credit card interest is charged every month on what you still owe, so the size of your payment decides both how long you are in debt and how much interest you pay. Enter your balance, APR and a fixed monthly payment to see your payoff date and total cost.
Worked example
A 5,000 balance at 22% APR costs 91.67 in interest in the first month. Paying 200 a month clears it in 34 months (2 years 10 months), with 1,749.88 in interest.
Pay 100 a month and it takes 137 months, over 11 years, and 8,678.06 in interest. Pay 300 a month and it takes 21 months and 1,021.60 in interest.
Why minimum payments cost so much
Minimum payments are set low, often a small percentage of the balance plus interest. Most of each payment then goes on interest, and the balance falls very slowly. A fixed payment above the minimum makes the biggest difference.
Ways to pay off faster
Pay the card with the highest APR first while paying the minimum on others (the avalanche method), or clear the smallest balance first for a quick win (the snowball method).
A balance transfer to a 0% card can help if you clear it before the offer ends and the fee is lower than the interest you save. Stop adding new spending to the card while you pay it off.
Frequently asked questions
How is credit card interest calculated?
Each month the card charges APR ÷ 12 on the balance. This calculator uses that monthly rate; many cards calculate interest daily, which gives a very similar result.
What if my payment is too small?
If the payment is not more than the monthly interest, the balance never goes down. The calculator flags the payment and shows the interest to beat, plus the payment that would clear the balance in 3 years.
Does it include new purchases or fees?
No. It assumes you stop using the card and pay the same amount every month. New spending, late fees or a rate change will make it take longer.
Should I pay off my card or save first?
Keep a small emergency fund so a surprise bill does not go back on the card, then put extra money towards the highest-rate debt. Card interest is usually far higher than savings interest.
Methodology
Each month, interest of APR ÷ 12 is added to the balance and then the payment is taken; the last payment is only what remains. Payoffs that would take longer than 50 years are treated as never. The 3-year payment uses the standard amortisation formula.
This calculator gives estimates for information only and is not financial advice. Your card issuer's terms, fees and interest method apply.
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