Australian Credit Card Payoff Calculator
See how long a credit card balance takes to clear at the minimum repayment, what the interest costs, and what a fixed higher repayment changes.
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This assumes you stop using the card
- You make no new purchases on the card
- You take no cash advances
- The whole balance is charged the purchase rate you enter, which stays the same
- The minimum repayment is worked out again each month from the new balance
- A higher repayment, if you enter one, stays the same every month until the card is clear
Any new spending adds to the balance and makes every time and cost here longer and higher.
Your Card
The closing balance on your latest statement.
The purchase rate on your statement. calx does not suggest a rate. Enter 0 for an interest-free balance.
Your card terms set the minimum as a percentage of the closing balance or a dollar amount, whichever is more. ASIC Moneysmart says it is typically 2% or 2.5%, or around $20. Check your own statement or card terms.
Optional. A yearly card fee charged to the balance while you are still paying it off.
Annual fee is assumed to be charged every 12 months, starting after the first 12 months. Card issuers set their own fee date, so yours may fall earlier or later. The fee is added to the balance at the start of that month, before interest, so it is charged interest like a purchase, and it stops once the card is clear. Moneysmart's calculator leaves fees out, so its figures match this one with no fee entered.
A Higher Repayment
The same amount every month until the card is clear. The last payment is only what is left owing. It must be at least the minimum repayment each month.
Estimates only, not financial advice. Works one month at a time: interest is charged on the balance each month at the yearly rate divided by 12, then the repayment is made. Card issuers charge interest daily and the timing of your payment matters, so your statements will differ a little. Does not model new spending, cash advances, promotional or balance transfer rates, late fees or other issuer rules.
Enter the balance, the purchase interest rate, the minimum repayment percentage and the minimum repayment dollar amount to see how long your card takes to clear.
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Frequently asked questions
How long does it take to pay off a credit card with minimum repayments?
Often decades. The minimum repayment is a percentage of the balance, so as the balance falls the minimum falls with it, and most of each payment goes on interest. A $5,000 balance at 20% interest with a minimum of 2% or $25, whichever is more, takes 486 months (40 years 6 months) to clear and costs $18,499.40 in interest, assuming nothing new is spent on the card.
How much does paying a fixed higher amount save?
Paying the same fixed amount every month means more of each payment reduces the balance. On the same $5,000 at 20%, paying $250 a month clears the card in 25 months with $1,133.05 in interest. That is 38 years 5 months sooner and $17,366.35 less interest than paying the minimum only. The fixed amount has to be at least the minimum repayment each month.
How is the minimum repayment worked out?
Your card terms set the minimum as a percentage of the statement closing balance or a dollar amount, whichever is more. ASIC Moneysmart says it is typically 2% or 2.5%, or around $20. The calculator works it out again every month from the new balance, and never asks for more than the balance itself, so the last payment is only what is left owing.
Why does the calculator assume no new spending?
Every figure answers how long the balance you owe today takes to clear. Any new purchase or cash advance adds to the balance, so it takes longer and costs more than shown. Cash advances are also usually charged a higher rate and interest from the day they are taken. If you keep using the card, treat these figures as the best case.
How are interest and fees calculated?
Each month, interest is charged on the balance at the yearly rate divided by 12, then the repayment is made. Issuers charge interest daily and the day you pay matters, so your statements will differ a little. An annual fee is optional. Annual fee is assumed to be charged every 12 months, starting after the first 12 months. Your issuer may charge it on a different date. The fee is added to the balance at the start of that month, before that month's interest, so it is charged interest like a purchase and counts towards the minimum repayment, and it stops once the card is clear. ASIC Moneysmart leaves fees out, so its figures match this calculator with no fee entered.
Why does my repayment never clear the card?
If a month's repayment is no more than that month's interest, the balance is not going down, so it never clears. This happens when the minimum percentage is about the same as, or lower than, the monthly interest rate (the yearly rate divided by 12), or when a fixed repayment is too small. An annual fee can also stop a falling minimum repayment from ever clearing a small balance. The calculator says so rather than showing a payoff time.
What does this calculator not cover?
It models one purchase-rate balance with no new spending. It does not model cash advances, interest-free days, promotional or balance transfer rates, late or other fees, or rules particular to your card issuer. It does not recommend a card or a way to pay it off, and moving a card balance to another product is not always cheaper once fees and the new rate are counted. Results are estimates, not financial advice.