Credit Card Payoff Calculator
See how long it will take to pay off your credit card and how much interest you’ll pay. Compare paying just the minimum versus making fixed payments to see how much faster you could become debt-free.
Additional amount beyond minimum
How to Use This Calculator
1. Enter your current balance – The total amount you owe on your card.
2. Add your interest rate – Find the annual rate on your statement (usually 15-22%).
3. Enter minimum payment – Typically 2-3% of your balance or a fixed minimum like $25.
4. Add extra payment amount – See how paying more speeds up your payoff.
FAQs
Credit Card Payoff Questions
Why does paying the minimum take so long?
Minimum payments are usually just 2-3% of your balance. Since most of each payment goes toward interest rather than reducing the principal, it can take decades to pay off a card this way, costing you significantly more in total interest.
How can I pay off my credit card faster?
Pay more than the minimum each month – even an extra $50 can make a big difference. Consider balance transfer cards with 0% interest periods to pause interest accumulation. Avoid adding new purchases to the card while paying it down.
Should I use a balance transfer card?
Balance transfers can be helpful if you’re committed to paying off the debt during the 0% period. Be aware of transfer fees (usually 1-3%) and the revert rate after the promotional period ends. Have a clear payoff plan.
What if I can’t afford to pay more than the minimum?
If you’re struggling, contact your card issuer about hardship arrangements. Consider speaking with a free financial counsellor through the National Debt Helpline (1800 007 007). Even small additional payments help reduce total interest.
Should I close my credit card after paying it off?
Not necessarily. Closing a card can affect your credit score by reducing available credit and shortening credit history. Consider keeping it open with a zero balance, or downgrade to a no-annual-fee version.