Credit Card Interest Calculator

Calculate how much interest you'll pay on your credit card balance and determine how long it will take to pay off your debt with different payment strategies.

Credit Card Balance Enter your current credit card balance in dollars

Annual Percentage Rate (APR) Enter your credit card's annual interest rate (e.g., 18.99 for 18.99%)

Monthly Payment Amount Enter how much you plan to pay each month

Payment Strategy

Additional Monthly Payment: $0

Show Amortization Schedule

Quick Examples:

How to Use This Calculator

Enter your current credit card balance
Input your credit card's annual percentage rate (APR)
Specify your monthly payment amount or select a payment strategy
Adjust the additional payment slider to see how extra payments affect your payoff timeline
Click Calculate to see your results

Formula Used

Interest = Balance × (APR ÷ 12)

Where:

Balance = Your current credit card balance
APR = Annual Percentage Rate (as a percentage)
Monthly Payment = Amount you pay each month

Example Calculation

Real-World Scenario:

Sarah has a credit card balance of $5,000 with an APR of 18.99%. She wants to know how long it will take to pay off her debt if she makes minimum payments of $125 per month.

Given:

Balance = $5,000
APR = 18.99%
Monthly Payment = $125

Calculation:

Monthly Interest Rate = 18.99% ÷ 12 = 1.5825%

First Month Interest = $5,000 × 0.015825 = $79.13

First Month Principal Paid = $125 - $79.13 = $45.87

New Balance = $5,000 - $45.87 = $4,954.13

Result: It would take approximately 63 months (5 years and 3 months) to pay off the balance, with a total of $2,875 paid in interest.

Why This Calculation Matters

Practical Applications

Determining the most effective payment strategy
Understanding how much interest you'll pay over time
Planning for debt-free financial goals

Key Benefits

Save money by paying off debt faster
Make informed decisions about credit card usage
Visualize your debt repayment progress

Common Mistakes & Tips

Making only minimum payments can extend your debt repayment timeline by years and significantly increase the total interest paid. Even small additional payments can make a substantial difference in paying off your balance faster.

Many people underestimate how quickly credit card interest accumulates. Even with a relatively low APR, interest can add hundreds or thousands of dollars to your debt over time. Understanding this impact is crucial for effective debt management.

Frequently Asked Questions

APR (Annual Percentage Rate) represents the yearly cost of borrowing, including interest and fees, expressed as a percentage. The interest rate is just the cost of borrowing the principal amount, without including additional fees. For credit cards, the APR and interest rate are often the same since most credit cards don't have additional fees included in the APR.

Most credit card companies calculate interest using the average daily balance method. They add up your balance each day of the billing cycle, divide by the number of days in the cycle to get the average daily balance, then multiply that by the daily periodic rate (APR ÷ 365) and by the number of days in the billing cycle.

The best strategy depends on your financial situation. The avalanche method (paying off the highest-interest card first) saves the most money on interest. The snowball method (paying off the smallest balance first) can provide psychological wins that keep you motivated. Regardless of method, paying more than the minimum is always recommended.

References & Disclaimer

Financial Disclaimer

This calculator provides estimates for educational purposes only. Results may vary based on your specific credit card terms, fees, and payment schedule. Always consult with a financial advisor for personalized advice regarding your debt management strategy.

References

Consumer Financial Protection Bureau - Credit Card Interest Rates - Information about how credit card interest rates work
Investopedia - How Credit Card Interest is Calculated - Detailed explanation of credit card interest calculation methods
NerdWallet - How to Pay Off Credit Card Debt - Strategies for paying down credit card balances

Accuracy Notice

This calculator assumes a fixed APR and doesn't account for potential changes in interest rates, fees, or promotional periods. Your actual interest charges and payoff timeline may differ from the estimates provided.

About the Author

Kumaravel Madhavan

Web developer and data researcher creating accurate, easy-to-use calculators across health, finance, education, and construction and more. Works with subject-matter experts to ensure formulas meet trusted standards like WHO, NIH, and ISO.

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finance loans-credit credit card interest money

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