Credit Card Calculator
Calculate credit card payments, payoff time, and interest charges.
Credit Card Details
Additional Options
Balance Transfer Options
Payoff Time
$2,357 total interest
Total Payments
Principal + interest
Interest Savings
vs minimum payments
Balance vs Interest
Monthly Minimum
Required payment
Credit Utilization
Impact on credit score
Payment Breakdown
Key Recommendations
- • High credit utilization may hurt credit score
- • Pay more than minimum to save on interest charges
- • Consider debt avalanche method for multiple cards
- • Current strategy saves $17794 vs minimum payments
How it works
A credit card calculator shows how long a balance takes to clear and how much interest it costs at a given payment. Interest accrues on the balance at the card's APR (usually daily), so each payment first covers that month's interest, and only the remainder reduces the balance.
Interest & payoff
Monthly interest = balance × (APR ÷ 12) Balance reduced = payment − interest
- APR
- annual percentage rate on the card
- balance
- amount owed
- payment
- monthly payment
Worked example
- Balance $4,000 at 20% APR
- Pay $150/month
- First month interest = 4,000 × (0.20 ÷ 12) ≈ $67
- Only $83 reduces the balance
≈ 33 months and ~$900 interest at $150/month; double the payment and both roughly halve.
Good to know
- Minimum payments are mostly interest by design — pay above the minimum to make real progress.
- Carrying a balance forfeits the grace period, so new purchases start accruing interest immediately.
- A 0% balance-transfer offer can pause interest, but mind the fee and the expiry date.
Related Calculators
Frequently Asked Questions
How is credit card interest calculated?
Most cards accrue interest daily: the APR divided by 365 is applied to each day's balance, then summed for the statement. Carrying $4,000 at 20% APR costs roughly $67 in the first month — interest your payment must cover before reducing the balance.
Why should I avoid paying only the minimum?
Minimum payments are designed to barely exceed the interest charge, so the balance shrinks glacially. A $5,000 balance at 18% APR can take decades to clear on minimums alone — any fixed amount above the minimum shortens the payoff dramatically.
What is a grace period?
The window between the statement close and the due date during which new purchases accrue no interest — but only if you paid the previous statement in full. Carry any balance and the grace period is forfeited, so new purchases start accruing interest immediately.
What is a good credit utilization ratio?
Keep balances below 30% of your credit limits, and ideally under 10%, both per card and overall. Utilization is a major credit-score factor and resets monthly, so paying down a high balance can lift your score quickly.
Are balance transfers worth it?
A 0% APR transfer can pause interest for 12-21 months, but transfer fees of 3-5% apply, and the promotional rate ends on a fixed date. They work best when you can realistically clear the transferred balance within the promo window.