Credit Card Payoff Calculator
See how long it'll take to clear your credit card, how much interest you'll pay, and what paying only the minimum really costs.
Balance over time
Assumes you stop using the card, interest is charged monthly at the yearly rate ÷ 12, and there are no fees. The minimum repayment is taken as 2% of the balance or $25, whichever is higher. Many Australian cards use a similar rule, but check your statement for yours.
Printed from ClearCalc (clearcalc.com.au/credit-card-payoff-calculator/). Estimates only, not financial advice.
Why paying only the minimum costs so much
Credit card interest is high, often around 20% a year, and the minimum repayment shrinks as your balance falls. That means most of each minimum payment goes on interest. On a $5,000 balance at 20.99%, paying only the minimum (2% of the balance or $25, whichever is higher) would take about 50 years and cost roughly $24,700 in interest, assuming you never use the card again.
Pay a fixed $200 a month instead and the card is gone in under three years (34 months), with about $1,630 in interest. That's a saving of more than $23,000.
What your statement must tell you
Australian card statements must include a minimum repayment warning. It shows how long it would take to pay off the balance with minimum repayments only, and what you'd need to pay each month to clear it in three years. If your card uses a different minimum rule from the one assumed here, your statement figures will be a little different.
Ways to pay off your card faster
- Pay a fixed amount, not the minimum. Setting up a fixed monthly direct debit stops your repayment shrinking as the balance falls.
- Stop adding to the balance. Use a debit card for everyday spending while you pay the card down.
- Consider a balance transfer. A 0% balance transfer can save a lot of interest, but only if you clear the balance before the offer ends. Any amount left over usually goes to the cash advance rate, often 21% or more.
- Look at a personal loan. A fixed-rate loan at 9% to 12% has a set end date and is often far cheaper. Compare with the personal loan calculator.
- Find the money in your budget. Our budget planner can help you spot an extra $50 or $100 a month.
How the calculator works
Each month, interest is added at the yearly rate divided by 12, then your repayment comes off. Real cards charge interest daily and may have an interest-free period on new purchases, annual fees and different rates for cash advances, so treat the results as an estimate. To see how interest builds on savings rather than debts, try the compound interest calculator.
Frequently asked questions
How long will it take to pay off $5,000 on a credit card?
At 20.99% and $200 a month, about 34 months, with roughly $1,630 in interest. Paying only the minimum could take around 50 years and cost about $24,700 in interest.
How is the minimum repayment worked out?
It varies by card. This calculator assumes 2% of the balance or $25, whichever is higher, which is common in Australia. Some cards use 2.5% or 3%, so check your statement.
Does a balance transfer help?
It can, if you pay off the balance during the 0% period and don't keep spending on the old card. Watch for a balance transfer fee and the high revert rate when the offer ends.
Is it better to pay off my credit card or save?
Usually pay off the card first. Clearing debt at 20% is like earning 20% tax-free, far more than a savings account pays. Keep a small emergency fund so you don't need the card for surprises.
Official sources used for this calculator include: Moneysmart – Personal loans, Moneysmart – Credit cards, Moneysmart – Saving. See how we calculate.
Reviewed by the ClearCalc team. Last reviewed October 2026. This calculator gives an estimate for general information only. Check important figures with the relevant government agency or a licensed professional.