Credit Card Interest Calculator
Estimate credit card interest, total payoff cost, and payoff time based on your balance, APR, and monthly payment strategy.
How credit card interest works
Most credit cards charge interest based on your APR (Annual Percentage Rate). This calculator converts APR into a monthly rate and simulates your balance month by month.
How minimum payments affect total interest
Minimum payments can keep you in debt for much longer because most of the payment can go toward interest and fees. Increasing your monthly payment—even a little—can reduce total interest significantly.
How to pay off credit card debt faster
Consider paying more than the minimum, reducing new purchases, and avoiding fees where possible. Extra monthly payments reduce the principal faster, which reduces future interest.
Frequently Asked Questions
Quick answers about APR, minimum payments, and payoff timelines.
How is credit card interest calculated?
This tool estimates interest monthly using your balance × (APR/12/100), then applies your chosen payment strategy.
What happens if I only make minimum payments?
Payoff can take much longer and total interest can be much higher, especially at high APRs.
How long will it take to pay off my credit card?
It depends on your APR, balance, monthly payment, fees, and whether you keep making new purchases.
Does APR mean monthly interest?
APR is annual. This calculator converts it to a monthly rate by dividing by 12.
Can extra payments reduce credit card interest?
Yes. Paying extra reduces principal faster, which reduces future interest and can shorten payoff time.
Disclaimer
This calculator provides estimates for informational purposes only. Actual interest calculations can vary by issuer, billing cycle rules, fees, promotions, and rounding.