Credit card repayment calculator
Enter your balance, interest rate and monthly payment to see exactly how long it will take to clear your credit card and how much interest you will pay in total. The results often surprise people. Then see what a balance transfer could save you.
Credit card interest is calculated daily on the outstanding balance. This means that even a few days' delay in making your payment costs you money. Set up a direct debit for at least your chosen monthly amount to pay automatically on the due date every month, without fail. The worst outcome is paying the minimum month after month and watching the balance barely move while the interest compounds.
Why minimum payments are a trap
The minimum payment is designed to keep you in debt as long as possible while maximising interest charged. Paying only the minimum on a £3,500 balance at 24.9% APR can take over 20 years and cost more than the original balance in interest alone.
Balance transfers
Moving your balance to a 0% card stops the interest clock for the introductory period. A 2 to 3% transfer fee is usually charged upfront. The saving is almost always significant if you can clear the balance within the 0% window. Check eligibility with a soft search first.
Section 75 protection
Under Section 75 of the Consumer Credit Act, your credit card company is jointly liable with the retailer for purchases between £100 and £30,000. This is a powerful protection for large purchases. It is one of the few genuine advantages credit cards have over debit cards.
Clearing in full each month
If you can pay the full balance every month you pay zero interest and effectively get an interest-free loan for up to 56 days. This is the right way to use a credit card. The rewards and cashback deals only make financial sense if you clear in full every month without exception.
Please note: All calculations assume a fixed monthly interest rate derived from the annual APR entered. Minimum payment calculations use the percentage and floor amounts entered and assume these do not change. Real minimum payments may vary by lender. Balance transfer savings are illustrative only. This is not financial advice. If you are struggling with credit card debt, free help is available from StepChange (stepchange.org) and Citizens Advice.
What does the credit card repayment calculator show?
The credit card repayment calculator shows the true cost of carrying a credit card balance — how long it will take to pay off at a given monthly payment, and the total interest paid over that period. It also shows the minimum payment scenario alongside your chosen payment, making the cost of minimum payments visible in specific, concrete terms.
Most people who carry a credit card balance significantly underestimate how long it will take to clear and how much it will cost in total. Running this calculation is often the trigger for taking the balance seriously.
How to use this calculator
Current balance: The outstanding balance on the credit card right now.
APR: The annual percentage rate on the card – found on your statement, card agreement or in your online banking. Most UK credit cards charge between 20% and 35% APR on balances.
Monthly payment: Enter the amount you plan to pay each month. Compare the result to the minimum payment scenario (typically 1 to 2% of the balance or £25, whichever is greater).
Reading the result: The calculator shows the number of months to clear the balance at your chosen payment, the total interest paid, and the total amount repaid. Running the minimum payment scenario alongside typically reveals that the same balance takes many years to clear and costs more in interest than the original purchase.
The minimum payment trap
The minimum payment is set by the lender to keep accounts current while maximising the interest charged. It is the lender’s preferred scenario, not the borrower’s. On a £1,500 balance at 24.9% APR:
- At minimum payment, over eight years to clear, approximately £1,500 in interest
- At £150 per month: under twelve months to clear, approximately £120 in interest
The difference between these two scenarios is the cost of treating the minimum payment as a target rather than a floor. The calculator makes this visible.
Frequently asked questions
What is APR, and how is it different from the interest rate? APR (annual percentage rate) includes both the interest rate and any mandatory fees, expressed as a single annual percentage. For most credit cards, APR and the interest rate are effectively the same. Always use the APR figure for repayment calculations.
Should I transfer to a 0% balance transfer card? A 0% balance transfer card allows you to transfer your existing balance to a new card that charges no interest for a promotional period – typically 12 to 24 months. If you can clear the balance within the 0% period, this eliminates all interest on the existing balance. The transfer fee (typically 2 to 3% of the balance) is usually far less than the interest saved. Use the calculator to compare the total interest on your current card against the transfer fee.
What happens if I only pay the minimum? Your minimum payment reduces slightly as the balance falls — so minimum payments on a reducing balance extend the repayment timeline significantly. Some card issuers calculate minimum payments as a percentage of the balance; others as interest plus a fixed amount. Both are designed to keep you in debt for as long as possible while staying current.
What if I have multiple credit cards? For multiple balances, two common strategies are the avalanche method (pay the minimum on all cards; direct extra payment to the highest-rate card first – saves most interest) and the snowball method (direct extra payment to the smallest balance first – provides motivational progress). Use the calculator on each card separately to model both approaches.
The information on this site is for educational and informational purposes only. Nothing on Be More Peter constitutes financial advice, and nothing should be treated as such. The calculators, articles and tools on this site are designed to help you understand financial concepts and run indicative numbers - they are not a substitute for professional advice tailored to your specific circumstances. Before making any financial decision - including decisions about mortgages, pensions, investments, savings or insurance — you should seek independent financial advice from a qualified adviser who is authorised and regulated by the Financial Conduct Authority (FCA). Calculator results are estimates based on the information you enter and the assumptions built into the tool. They are illustrative only and should not be relied upon as accurate projections. Rates, thresholds and rules change regularly - always verify figures with an appropriate professional or official source before acting on them. Be More Peter is not authorised or regulated by the FCA. The content on this site does not constitute a financial promotion.
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