Credit Card Payoff Calculator
See how long until you're debt-free and how much interest you'll pay — then find ways to pay it off faster.
| Total Interest Paid | $0 |
| Total Amount Paid | $0 |
| Debt-Free Date | — |
How Credit Card Interest Works
Credit cards charge interest daily on your outstanding balance. The daily rate is the annual rate divided by 365. If your balance is $5,000 at 20% p.a., you accrue roughly $2.74 in interest every single day — or about $82/month.
The Minimum Payment Trap
Most credit card minimum payments are 2–3% of your balance. At $5,000 with a 2% minimum, that is $100/month — barely covering the $82 in monthly interest. Paying only minimums on a $5,000 balance at 20% can take over 20 years and cost thousands in interest.
A worked example
$5,000 on a card at 20% p.a., paying $200 a month and charging nothing new, takes 33 months to clear. Interest along the way is $1,522, so you repay $6,522 to clear $5,000.
Strategies to Pay Off Faster
- Pay more than the minimum. Even an extra $50/month can cut years off your repayment timeline.
- Balance transfer. Move your debt to a 0% balance transfer card for 12–24 months, then attack the principal.
- Stop using the card. You cannot empty a bath with the tap still running. Freeze the card if needed.
- Apply windfalls. Tax refunds, bonuses, or gifts go straight to the balance.
- Debt consolidation. A personal loan at 10% is cheaper than a credit card at 20%.