Credit Card Interest Calculator
Credit card interest is charged on the balance each month, at the yearly rate divided by twelve. This shows what this month's interest costs, and how long a fixed monthly payment takes to clear the balance.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
Monthly interest is the balance times the yearly rate, divided by twelve. Your payment covers that interest first. What is left lowers the balance, so the next month's interest is a little smaller.
The months to payoff come from the loan formula solved for the number of months, rounded up. It assumes no new purchases and a rate that does not change. The last payment is usually smaller than the others, and total interest counts only what that last payment needs.
Worked example
On a balance of $4,000.00 at 22.99%, this month's interest is $76.63. Paying $150.00 a month clears the card in 38 months, with $1,653.16 paid in interest.
Questions
Why does a small payment take so long?
Much of a small payment can go to interest. The closer the payment is to the monthly interest, the slower the balance falls.
Is the rate on my card fixed?
Many card rates change with a market index. Your statement shows the rate that applies to you.
What if my payment is less than the monthly interest?
The balance grows, so the card never clears. Raise the payment above the interest shown.
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