Overview
This credit card repayment calculator shows how long your balance will take to clear and how much interest it will cost — whether you pay only the minimum or a fixed amount each month. It reveals the "minimum payment trap", where small payments stretch a debt over decades, and tells you exactly what to pay to be debt-free within 1, 2, 3 or 5 years. If you have a 0% balance-transfer or purchase deal, you can add the promo length and the rate afterwards to see the payment needed to clear it before interest kicks in.
How it's calculated
Credit card interest is charged on your balance each month, so it compounds if you don't clear it. We simulate it month by month:
- Interest is added each month at your APR ÷ 12 (0% during any promotional period).
- Your payment is deducted — either a fixed amount or the minimum.
- The typical UK minimum payment is the interest plus about 1% of the balance (at least £5), which is why it falls so slowly.
To find the payment needed to clear the balance by a target date, we search for the fixed monthly amount that reaches zero in that many months.
Each month: balance = balance + interest − payment (interest = balance × APR ÷ 12)
Because the minimum payment is mostly interest early on, paying a fixed amount instead can cut years — and hundreds or thousands in interest — off the total.
Worked example
Take a £3,000 balance at 24.9% APR, paying only the minimum each month:
| Paying the minimum | ≈ 28 years 9 months | to clear |
|---|---|---|
| Interest on minimum | ≈ £6,000 | |
| To clear in 2 years | £160/month | |
| To clear in 3 years | £119/month |
Paying only the minimum could take nearly 29 years and cost about £6,000 in interest — more than the original balance. Paying a fixed £160 a month clears it in two years, or £119 a month in three. Fixed beats minimum, every time.
Current rates & key facts
Credit card key facts
| Item | Detail |
|---|---|
| Minimum payment | Usually interest + ~1% of the balance (at least £5) — clears very slowly |
| 0% deals | Interest is paused, but reverts to the standard APR when the promo ends |
| Balance-transfer fee | Often ~1%–3% of the amount moved, added to the balance |
Minimum-payment rules and APRs vary by card. This is an illustration — check your statement for your exact minimum and rate.
Last updated 29 June 2026 · Source: MoneyHelper — Credit cards