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Credit Card Debt Amortisation Calculator

Use our Credit Card Debt Amortisation Calculator to understand the true cost of credit card debt over time. Calculate the total interest paid and see how minimum repayments can keep you in debt for longer.
Updated 12 June 2024
Summary
  • Managing credit card debt can be challenging, especially with the high interest rates that can quickly accumulate if not paid off efficiently.
  • Too many New Zealanders have long-term credit card debt, and it's not going away - this March 2024 story from RNZ explains the range of debt issues facing many hard-working Kiwis.
  • To help you understand the long-term costs associated with your credit card debt, we've created this Credit Card Debt Amortisation Calculator.

How to Use the Calculator
Insert the following details:
  • Your Credit Card Debt: The current balance owing on your credit card.
  • The Term: The number of years you plan to pay off the credit card debt.
  • The Interest Rate: The annual interest rate you are charged.
  • The Start Date: The date you begin making payments.​
Example Calculation
Mike has a credit card debt of $10,000, which he plans to pay off over five years with an interest rate of 25.00% p.a starting from today. When you input these values into the calculator, you will get the following results:
  • Monthly Payment: $294 (estimated, but not necessarily aligned with the credit card's minimum payment)
  • Total Payments Over 60 Months: $17,611
  • Total Interest Paid: $7,611
  • Estimated Minimum Monthly Payment: Around 3% of the balance

The Importance of the 3% Minimum Payment
  • As outlined in our dedicated guide, credit card issuers set the minimum monthly payment at 2%, 3% or 5% of the outstanding balance. In Mike's case, 3% would initially be approximately $300 ($10,000 X 3%).
  • This minimum payment is crucial because if you only make the minimum payments, the repayment period can extend significantly, leading to higher interest costs over time.
  • While Mike's plan involves paying a fixed amount over five years, sticking to only minimum payments would result in a much longer repayment period and substantially more interest paid. Therefore, understanding and exceeding the minimum payment can help reduce the total cost of your credit card debt.

Know This: High interest rates on credit cards can significantly increase the total amount you repay. In the above example, you will pay $7,611 in interest alone over five years. This highlights the importance of paying off credit card debt as quickly as possible to minimise interest costs.
Amortisation Schedule
The calculator provides a detailed amortisation schedule showing how much of each payment goes towards the principal and interest each year, as well as the remaining balance:
Credit Card Debt Amortisation Calculator
Credit Card Debt
$
Term
Years
Interest Rate
%
Start Date
Calculate
464.84
Monthly Payment
Over 120 Payments
Total Interest
Pay-off Date
Amortisation Schedule
Yearly Amortisation
Monthly Amortisation
Important Considerations
  • Fixed repayments: The calculations assume that you make the same fixed credit card repayment for the entire repayment period. They do not follow the minimum credit card repayments required by issuers.
  • Stable interest rate: The interest rate is assumed to remain constant without any increase or decrease.
  • Consistent payments: It is assumed you do not miss any repayments, overpay, or underpay during the term.

Video guidance: MoneyHub Founder Christopher Walsh explains how the calculator works in the video below:
Related guides and tools: