Shows how much interest you will pay and how long it will take to pay off your credit card.
Credit card interest is typically calculated daily based on your average daily balance. Every month, the bank adds this accrued interest to your total balance, which means you pay interest on your interest—a process known as compounding.
High APRs mean that a larger portion of your monthly payment goes toward interest rather than reducing your actual debt. This can create a cycle where your balance barely decreases even if you make consistent payments every month.
Why minimum payments are costly: Paying only the minimum can extend your debt for decades and cost thousands in interest.
How extra payments reduce interest: Even a small extra payment each month directly reduces your principal balance, shortening your payoff time.
When balance transfers or loans may help: Consolidating high-interest debt into a lower-rate loan can save significant money if managed responsibly.
This tool provides educational estimates based on standard monthly compounding. Actual results may vary slightly depending on your bank's specific daily interest calculation method.
Yes, the calculator assumes interest is compounded monthly, which is the standard practice for most credit card providers.
If your interest rate is high, a large portion of your monthly payment is used just to cover the interest charge, leaving very little to reduce the original debt.
This calculator focuses on interest. If you have an annual fee, you should factor that into your total balance manually for the most accurate payoff timeline.
Credit card APRs vary widely based on credit score, but they typically range from 15% to 29%. Lowering this rate is the fastest way to reduce interest costs.
While designed for credit cards, it works for any revolving line of credit. For fixed installment loans like car or mortgage payments, use a dedicated loan calculator.