Credit Card Payoff Calculator
Enter your current credit card balance, APR, and the fixed monthly payment you plan to make. The calculator will show how long it takes to clear the balance, the total interest paid, and how much you could save by increasing your monthly payment by £50 or £100.
Your credit card
All calculations assume a fixed monthly payment and no new spending on the card.
Related: Minimum Payment · Debt Snowball · APR Calculator
How the credit card payoff calculator works
Credit card interest compounds against you every month. Your APR is the annual rate, but interest is typically charged monthly — the monthly rate is roughly APR divided by 12. At 24% APR, that is 2% per month applied to your outstanding balance. Because interest is added before your payment is subtracted, even a modest balance grows quickly if you pay only the minimum.
To illustrate how damaging this can be: a £3,000 balance at 24% APR with a fixed monthly payment of £75 takes around five years to clear and costs over £1,400 in interest — nearly half the original balance paid in fees alone. Minimum payments are deliberately designed to keep you in debt as long as possible. One powerful alternative is a balance transfer card offering a 0% promotional period (often 12–30 months), which halts interest entirely while you pay down the principal. A transfer fee of 1–3% typically applies, but this is almost always far cheaper than continued interest at a standard APR.
Frequently asked questions
How is credit card interest calculated?
Your APR is divided by 12 to get a monthly rate, which is applied to your average daily balance each month. At 24% APR the monthly rate is 2%, so a £1,000 balance costs £20 in interest in that month. That interest is added to your balance before your payment reduces it, which is why balances can feel difficult to shift even when making regular payments.
What happens if I only make minimum payments?
Minimum payments are typically 1–2% of the balance or £25, whichever is higher. Because the minimum falls as your balance falls, very little of each payment reduces the principal. Paying minimums only on a £3,000 balance at 24% APR can take over 20 years to clear and cost more in interest than the original debt. This calculator shows exactly how much time and money you save by paying more each month.
What is a balance transfer card?
A balance transfer card lets you move debt from one or more existing cards to a new card that offers 0% interest on the transferred balance for a promotional period, often 12–30 months. A transfer fee typically applies, usually 1–3% of the amount moved. If you clear the balance before the promotional period ends, you pay no further interest. It is important to stop using the old card for new spending and to have a clear plan to repay the balance before the 0% period expires.
Should I pay off my credit card or save?
If your credit card APR (e.g. 20–30%) is higher than your savings rate (e.g. 4–5%), paying off the card first gives a guaranteed return equal to the card's interest rate — something no savings account can match risk-free. Most financial advisers recommend clearing high-interest debt before building savings beyond a small emergency fund. Once the card is cleared, redirect those monthly payments into savings or investments.