Credit card repayment calculator

What the result means

Credit cards charge interest on the revolving balance. A payment that only covers interest never finishes the debt.

How it is calculated

Each month: interest = balance × annual rate / 12; new balance = balance + interest − payment

• Payment: Fixed amount you intend to pay every month.
• Rate: Purchase interest rate, not a promotional rate unless you enter one.

The balance is iterated month by month until it clears or 80 years elapse. If the payment never exceeds interest, the tool reports that the debt does not reduce.

Worked example

$4,000 at 19.99% paying $150 a month

No further spending.

First month’s interest

About $67

Principal reduced

$150 − $67 ≈ $83

Most of a small payment is interest at the start. Raising the payment shortens the schedule sharply.

Your card contract is the authority

Australian statements show a minimum repayment, often around 2% of the closing balance or a dollar floor. That is an illustration here, not your issuer’s clause. Interest-free periods, cash-advance rates and annual fees are not modelled.

Paying more than the minimum is usually the only way to finish in a few years on a typical purchase rate.

Questions