Credit Card Payoff Calculator

How to Use the Credit Card Payoff Calculator

Enter your current credit card balance, the annual interest rate (found on your statement), and either a monthly payment amount or a target payoff date. Click Calculate to see how long it will take to clear the balance and the total interest you will pay.

Why Credit Card Interest Adds Up So Fast

Australian credit cards typically charge between 12% and 22% per annum — substantially higher than personal loans or mortgages. Interest is usually charged daily on the outstanding balance and added monthly, meaning carrying a balance compounds quickly.

For example, a $5,000 balance at 19.99% p.a. with minimum repayments of around 2% can take over 20 years to pay off and cost more than $8,000 in interest — more than the original balance itself.

Strategies to Pay Off Credit Card Debt Faster

• Pay more than the minimum: Minimum repayments are designed to keep you in debt longer — even a small additional amount each month dramatically reduces the payoff time
• Balance transfer: Moving your balance to a 0% interest balance transfer card gives you a window (typically 6–24 months) to reduce the principal without interest — but watch for the revert rate after the promotional period ends
• Debt consolidation: Rolling multiple debts into a lower-rate personal loan reduces your interest cost and simplifies repayments