Credit Card Payoff Calculator
Find out how long it will take to pay off your credit card and how much interest you will pay in total.
Enter Details
Months to Pay Off
26 months
Payoff Date
July 2028
Total Interest Paid
£900.00
Total Amount Paid
£3,900.00
How Credit Card Interest Works
Credit card interest is calculated daily on your outstanding balance and charged monthly. The APR (Annual Percentage Rate) is the annual interest rate — to find the monthly rate, divide by 12. On a typical UK credit card with 22.9% APR, the monthly rate is approximately 1.9%.
If you only make the minimum payment each month, you will pay interest on the remaining balance indefinitely. On a £3,000 balance at 22.9% APR, paying only the minimum (around £60/month) could take over 20 years to clear and cost more than £3,000 in interest alone.
Increasing your monthly payment even slightly can dramatically reduce the time and cost of paying off your balance. Paying £150 instead of £60 per month on the same balance could reduce the payoff time from 20+ years to under 2 years and save thousands in interest.
Frequently Asked Questions
What is the minimum payment on a credit card?
Most UK credit cards require a minimum payment of either 1–2% of the outstanding balance or £25, whichever is greater. Always pay more than the minimum to avoid spiralling debt.
What is a typical credit card APR in the UK?
The average credit card APR in the UK is around 22–25%. Some cards offer 0% introductory periods, while specialist cards for poor credit can charge 35–40% APR.
Should I pay off my credit card or save?
If your credit card APR is higher than the interest rate on your savings (which it almost certainly is), paying off the card first is almost always the better financial decision.
What happens if I miss a payment?
Missing a payment typically incurs a late fee (usually £12), may trigger a penalty interest rate, and will be recorded on your credit file, potentially affecting your credit score.