See how long it will take to pay off your credit card balance and how much interest you will pay.
Rates as of Q2 2025 (example)
| Period | Date | Payment | Principal | Interest | Balance |
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This calculator shows how long it will take to pay off your credit card balance and how much total interest you'll pay, based on a fixed monthly payment amount - helping you see the real cost of carrying a balance and the impact of paying more than the minimum.
This calculator simulates paying a fixed amount each month: interest is charged on the remaining balance at the card's monthly rate, then the rest of your payment reduces the principal, repeating until the balance reaches zero.
Formula: Each month: Interest = Balance × (Annual Rate ÷ 12). Principal Paid = Monthly Payment − Interest. Balance = Balance − Principal Paid. Repeat until Balance = 0. Total Interest = sum of all monthly Interest charges.
Example: An A$5,000 balance at a 20% interest rate (example rate — enter your actual rate), paid off with a fixed A$200/month payment, would take about 33 months (just under 3 years) to pay off, with total interest of roughly A$1,522.10 over that time. (Note: this example is for illustration purposes only.)
Credit card interest rates in Australia are often significantly higher than other forms of borrowing - rates in the high teens to mid-20s are common, particularly for "rewards" or "frequent flyer" cards which often carry higher rates and annual fees to fund their reward programs. This calculator uses a fixed monthly payment for simplicity, but if you're only paying your card's minimum payment, that minimum is often calculated as a small percentage of your balance plus interest (commonly 2-3%), which decreases over time as your balance falls - meaning a "minimum payments only" approach can take many years and result in substantial total interest. Balance transfer cards, which offer a temporary 0% or low interest rate on transferred balances for a promotional period, can be a useful tool for paying down debt faster - but be aware of balance transfer fees and the regular (often much higher) interest rate that applies after the promotional period ends, and to any new purchases made on the card. If you're struggling with multiple debts, our Debt Payoff Calculator and Debt Consolidation Calculator can help compare strategies for tackling them.
Credit cards are unsecured debt with no collateral, and balances can be drawn down and repaid repeatedly, making them riskier and more costly for lenders to administer than a fixed-term secured loan. Rewards and frequent flyer cards often carry even higher rates and annual fees to help fund their reward programs - if you carry a balance, a lower-rate card (even without rewards) is usually far cheaper overall.
Minimum payments are often calculated as a small percentage of your balance (commonly 2-3%) plus accrued interest, and this minimum decreases as your balance falls. This means a "minimum payments only" approach can take many years - sometimes decades - to pay off, and result in total interest that can exceed the original balance. This calculator uses a fixed payment amount, which generally pays off debt faster than a declining minimum payment.
Balance transfer cards offer a temporary low or 0% interest rate on a balance moved from another card, usually for a set promotional period (often 6-24 months). This can help you pay down principal faster without ongoing interest charges, but watch for balance transfer fees (often 1-3% of the transferred amount) and the regular interest rate that applies after the promotional period - any remaining balance after that point will accrue interest at the higher rate.
Generally, if your credit card interest rate is higher than the return you'd realistically expect from investing (which is common, given credit card rates are often 15-25%+), paying off the credit card first provides a better guaranteed "return" in the form of interest saved. Investing typically only makes more sense once high-interest debt is cleared, unless there's a specific reason (like an employer-matched contribution) to prioritise investing.
Yes, significantly - if you're carrying a balance, most cards charge interest on new purchases immediately (the interest-free period on purchases typically only applies if you pay your statement balance in full each month). Adding new purchases to a card you're trying to pay off increases your balance and the interest charged, extending your payoff timeline beyond what this calculator estimates if you continue to add to the balance.
This calculator assumes a fixed monthly payment amount that you choose, showing how long payoff would take and the total interest at that payment level. A calculator modelling minimum payments (which decline as a percentage of the falling balance) would show a different - typically much longer - payoff timeline and higher total interest, since the payment amount decreases over time rather than staying fixed.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute financial advice. The interest rate used is an example only and does not represent a rate currently charged on any specific card - actual rates, fees, and minimum payment calculations vary by card issuer and change periodically. Always check your card's terms and conditions, and consult a qualified financial adviser or a free financial counselling service if you need help managing debt.