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.
Months to Pay Off
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Total Interest Paid
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Total Amount Paid
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Debt-Free Date
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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.
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%.
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Frequently Asked Questions
How long does it take to pay off a credit card?
It depends on your balance, interest rate, and monthly payment. At 20% interest on a $5,000 balance, paying $200/month takes about 32 months and costs over $1,300 in interest. Increasing to $300/month cuts it to 20 months and saves nearly $600 in interest.
What is the minimum payment trap?
Minimum payments are typically 2–3% of the balance, which barely covers the interest. Paying only minimums can mean decades of debt and thousands in interest. Always pay more than the minimum whenever possible.
What is the average credit card interest rate in Australia?
The average credit card purchase rate in Australia is around 19–20% p.a. Some cards charge up to 22%, while low-rate cards are available from around 8–12%. Balance transfer offers may provide 0% for a limited introductory period.
Should I pay off my credit card or save?
If your credit card charges 20% interest and your savings earn 5%, paying off the card first gives you a guaranteed 20% return — far better than any savings account. The only exception is if you have no emergency fund at all.
What is a balance transfer and does it help?
A balance transfer moves your debt to a new card with a low or 0% introductory rate, typically for 12–24 months. This can significantly reduce interest costs, but only works if you pay off the balance during the promotional period and avoid new spending on the card.
Disclaimer: This calculator provides estimates for illustrative purposes only. Actual interest charges may vary. This is not financial advice.
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