Credit Card Repayment Calculator

Guide

How the payoff is worked out

Each month the interest is added at the yearly rate divided by 12, then your payment is taken off. The calculator repeats that until the balance is gone, and the last payment is smaller. The option Payment to be clear by a date works backwards: payment = balance × r ÷ (1 − (1 + r)⁻ⁿ), rounded up to the next cent.

For example, £3,000.00 at 22% takes 2 years 10 months at £120.00 a month and costs £1,049.93 in interest. To be clear in 24 months you would pay £155.64 a month. The balance, rate and payment are placeholders. Use the figures on your statement.

Why paying a little is slow

Citizens Advice says that if you cannot clear the balance you will usually owe at least a minimum payment, and that paying only that amount increases what you pay overall (linked below). The calculator does not know your issuer’s minimum, so type the payment you plan to make. Halving the payment in the example to £60.00 stretches 2 years 10 months to 11 years 5 months and the interest from £1,049.93 to £5,206.84.

When the payment does not cover the interest

In the example, the first month’s interest is £55.00. A payment of £54.00 is less than that, so the balance never falls, and the calculator says so instead of showing a time. Any payment above the first month’s interest brings the balance down.

What is not included

New purchases, fees, cash advances, balance transfers and rate changes are not included, and the balance is treated as one balance at one rate. Cards usually work out interest daily from your statement date, so the real figure differs a little. Many cards charge no interest on purchases if you pay the full balance by the due date, so check your card’s terms.

Common questions