How the repayments are worked out
The calculator works month by month. Each month, interest is added at the monthly equivalent of the APR, which is (1 + APR) raised to the power of 1/12, minus 1. Then your payment is taken off, until the balance reaches zero.
With a fixed payment, you pay the same amount every month. With a percentage payment, you pay that percentage of the balance, but never less than the minimum amount you enter. As the balance falls, so does a percentage payment, which is why minimum payments take so long to clear a debt.
If your first payment wouldn't cover the first month's interest, the balance would never be cleared, and the calculator tells you so.
Worked examples
Paying £150 a month off a £3,000 balance at 24.9% APR clears it in 2 years 2 months. You'd pay £3,792.64 in total, of which £792.64 is interest.
Paying 3% of the same balance each month, with a minimum of £25, starts at £90 a month but takes 13 years 10 months to clear. You'd pay £7,070.47 in total, of which £4,070.47 is interest.
What the calculator assumes
It assumes you don't spend anything new on the card, the APR stays the same and you pay on time every month. New spending, rate changes, fees or late payment charges will make it take longer and cost more.
Card providers can calculate interest and minimum payments in different ways, for example charging interest daily or including interest in the minimum payment. Your statement will show your actual figures.
Inputs for the credit card repayment calculator
Card balance
How much you owe on the card now, in pounds.
APR
The annual percentage rate on your card for purchases or the balance you're repaying. You'll find it on your statement. The rate shown is only an example.
How you'll pay
Choose a fixed amount each month, or a percentage of the balance to see what happens if you only make the minimum payment.
Monthly payment
The amount you'll pay every month. Only shown if you choose a fixed amount.
Percentage of the balance
The share of the balance you'll pay each month, as on many minimum payments. Only shown if you choose a percentage.
But at least
The lowest payment you'll make, however small the balance gets. Most cards set a minimum payment amount, often £5 to £25. Only shown if you choose a percentage.
CALCULATOR QUESTIONS
Credit card repayment calculator questions
How long will it take to pay off my credit card?
It depends on your balance, APR and payment. At 24.9% APR, paying £150 a month clears £3,000 in 2 years 2 months. Enter your own figures to see your result.
Why does paying the minimum take so long?
A minimum payment is usually a small percentage of the balance, so as the balance falls, the payment falls too. Much of each payment goes on interest, and the balance shrinks slowly.
How can I pay my card off faster?
Pay a fixed amount that's more than the minimum and stop using the card for new spending. Even a small increase in your monthly payment can cut the time and interest.
Why does it say my balance will never be cleared?
Your payment doesn't cover the interest added each month, so the balance wouldn't go down. You'd need to pay more each month to clear it.