Borrowing
Credit card payoff calculator
Credit card minimum payments are designed to clear a card slowly — often over 25 years or more. See how a small fixed payment instead can clear the balance in under five years and save you thousands.
- Time to clear
- 2y 9m
- Total interest
- £1,335
- Total repaid
- £4,835
Paying only the minimum on a typical card can stretch repayment past 25 years and cost more in interest than the original debt. Even a small fixed payment above the minimum often clears the balance in under five years. Consider a 0% balance transfer card if your credit record allows — but only if you can clear (or transfer again) before the 0% period ends.
How it works
- Each month we charge interest on the outstanding balance at the monthly rate (APR ÷ 12), then subtract your payment, then repeat.
- If you pick the comparison mode, we also model the UK minimum-payment rule — usually 1% of the balance plus that month's interest, with a £5 floor.
- If your fixed payment is smaller than the first month's interest, the balance grows. We warn you and suggest a workable minimum.
Common questions
- What is the UK minimum payment rule?
- Cards issued since April 2011 must collect at least the month's interest plus 1% of the balance (or a £5 floor). Older cards may have lower minimums but the same approach applies.
- Should I clear cards or save first?
- If a card's APR is higher than the return you would get on savings (almost always true), clearing it first usually wins. Keep a small emergency fund first so you do not put new spending back on the card.
- Will paying it off hurt my credit score?
- No. Lower utilisation (the % of your limit used) usually helps your score. Keeping the account open after payoff also helps your average credit age.