How to use the Credit Card Repayment Calculator
- 1 Enter your card balance.
- 2 Enter the interest rate a year.
- 3 Enter the fixed repayment you can make each month.
- 4 Enter the minimum repayment percentage from your statement.
Worked example
A $5,000 balance on a card charging 20.99%. Paying a fixed $250 a month clears it in about two years with about $1,207 of interest. Paying only a 2% minimum would take decades and cost over $27,000 in interest.
Features
Payoff time
Years and months until the balance is cleared.
Minimum repayment trap
Shows the cost of paying the minimum.
Interest saved
Difference between the two approaches.
Warning
Flags repayments too small to cover interest.
When to use it
Clearing debt
Set a monthly target.
Balance transfers
Compare with a low-rate transfer.
Budgeting
See what an extra $50 a month does.
Consolidation
Compare with a personal loan.
Frequently asked questions
How is the minimum repayment worked out?
Usually 2% to 3% of the balance, or a set amount such as $25 if that is more. Your statement shows your card's rule.
Why does the minimum take so long?
Most of a minimum payment goes on interest, and as the balance falls the minimum falls too, so it can take decades to clear.
What does my statement show?
Australian card statements must show how long it would take to pay off the balance with minimum repayments and the total interest.
What are interest-free days?
If you pay the closing balance in full by the due date, you usually pay no interest on purchases.
Should I use a balance transfer?
A low or 0% balance transfer can save interest, but check the fee, the revert rate and the length of the offer.
Is cash advance interest different?
Yes. It is usually higher and starts on the day you withdraw cash.
How can I pay off my card faster?
Pay more than the minimum, stop using the card, and consider a lower-rate card or consolidation loan.
What if I cannot pay?
Contact your lender to ask for hardship help and call the free National Debt Helpline on 1800 007 007.
Does paying more help my credit score?
Lower balances and on-time payments can improve your credit report over time.
Does this include fees?
No. It assumes no new spending and no annual fee or rate change.
Is a lower rate card worth it?
If you carry a balance from month to month, a lower interest rate usually saves more than rewards points earn.
Should I close my card after paying it off?
Closing unused cards lowers your total credit limit, which lenders consider when you apply for a home loan.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated