Credit Card Interest Calculator
Our credit card calculator works out how long it will take you will take to pay off your current credit card balance, and the total interest you'll pay. Just enter your balance, interest rate and how much you usually pay off each month and let us do the work.
Know This: If you want to reduce your interest costs, ask your bank to lower your credit card limit. The less you owe, the less interest you'll pay and the sooner you can pay it off.
How much do you owe on your credit card?
This rate of interest determines how much it costs for you to borrow on the credit card.
You can find your rate of interest on your credit card statement - it will be in a summary box at the top or at the end of your statement. In most cases, it will be somewhere between 12.50% and 29.99%.
If you don't know what it is and can't find it, contact your credit card provider - they will be able to tell you.
Enter the size of the payment you typically make each month.
If you are not sure how much you pay, find your last three statements and looks for 'payments', and see how much they were. If they are different, take an average of the three.
Use the slider above then update your results to see how adjusting your monthly payments can reduce the total amount you repay
Oops! Are you sure? This doesn't look right.
Oops! You'll need to repay more each month to pay off the card within the next 20 years.
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Credit Card Interest Frequently Asked Questions
Interest is charged when you don't fully pay off your credit card balance on the due date. For example, if your statement says $4,000 is due on 15 March and you only pay $500, you will pay interest on the $3,500 that is unpaid. You will be charged interest until the balance is fully repaid.
Interest is calculated daily and charged to a balance at the end of the month if you do not pay off the entire balance. For example, if you have a credit card with an interest rate of 24% p.a. and a $1,000 balance to pay that is overdue, you will pay 2% per month (calculated as 24% / 12 months) on the balance until it is repaid. This works out to $20 per month, or $240 a year. The higher the interest rate and the larger the balance owed, the more dollars you will spend on making interest payments.
As soon as possible is the best answer. If you have spare money and have a habit of spending more than you should, then it's a good idea to pay down a credit card balance as soon as you can.
Yes - you will be charged interest on the balance that remains unpaid. For example, if your balance is $1,000 and the minimum payment is 5% and you make a $50 payment, you will pay interest on the $950 owing.
Based on our review of the range of options in the market, but we believe 20% to 24% p.a. is an accurate figure.
Yes, because not paying off a credit card balance in full is a negative credit history event. Our guide to credit scores has more information.
A 'good' interest rate is 0%, which is available for up to 12 months with a balance transfer credit card. Otherwise, the lower the percentage, the better the credit card all other things being equal. A competitive interest interest rate is anything below 15% - our guide to low interest credit cards has more information.
The only way to reduce your credit card interest rate is to switch to a better credit card.
