See how long a credit card balance will take to clear and what the interest will cost. It also shows what happens if you only pay a minimum of the kind your card provider sets.
Results are estimates for planning. Check the figures before you make a financial or health decision.
How the Credit card payoff calculator works
The calculator runs a month-by-month simulation. Each month, interest is added to the balance at the monthly rate, then your payment is taken off. It repeats until the balance reaches zero, with a cap of 100 years.
- Monthly rate: by default APR ÷ 12, a simple approximation. You can switch to the effective conversion, (1 + APR)^(1/12) − 1, which gives a slightly lower monthly rate. The result states which one was used.
- Fixed payment: months to clear and total interest. If the payment does not cover the first month’s interest, the tool tells you.
- Target months: the level payment needed to clear the balance in that time.
- Minimum-payment trap: you type the rule, a percentage of balance on top of interest, with a floor amount. Each month’s payment is the larger of the two.
It assumes no new spending or fees, and real cards compute interest daily.
Worked example
Using the default values in the calculator above:
| Input | Value |
|---|---|
| Card balance | £3000 |
| Purchase APR | 22.9 % |
| Convert APR to a monthly rate by | APR ÷ 12 (simple approximation) |
| How do you want to pay? | A fixed monthly payment |
| Fixed monthly payment | £100 |
| Minimum rule: % of balance on top of interest | 1 % |
| Minimum rule: lowest payment (floor) | £5 |
Time to clear the balance: 3 years 9 months (45 months)
| Monthly payment | £100.00 |
|---|---|
| Total interest | £1,495.50 |
| Total repaid | £4,495.50 |
| Monthly rate used | 1.9083% (APR ÷ 12) |
| Minimum-payment trap: time to clear | 28 years 5 months (341 months) |
| Minimum-payment trap: total interest | £5,507.37 |
Tips and common mistakes
Find your own minimum rule on a statement or in the terms, as it differs between cards and changes over time. Pay more than the minimum when you can, as the extra goes straight to the balance. Setting up a fixed payment at your first minimum keeps the payment from shrinking as the balance falls, which clears the card much faster. Check whether your statement has promotional rates on part of the balance, as this tool uses one rate. If you carry several cards, compare methods with the debt snowball and avalanche calculator.
Frequently asked questions
Why does paying the minimum take so long?
When the minimum is interest plus a small percentage of the balance, very little goes towards the debt, and the payment shrinks as the balance falls. The balance declines slowly and interest builds up for years.
Which monthly rate conversion should I use?
Most statements quote the monthly rate as roughly APR ÷ 12, so the default is a close match. The effective option is the mathematically exact equivalent of a compounded APR.
Does this include late fees or new purchases?
No. It assumes you stop spending on the card and always pay on time. Fees, new purchases or a change of rate would change the result.
Guides that help
- Credit card interest explained: APR, minimums and payoff time
- Debt snowball vs avalanche: which method suits you?
- Loans, APR and car finance: comparing the real cost