Credit Card Payoff Calculator
Calculate how long to pay off your credit card and how much interest you will pay, with optional extra payments.
Check your statement — average in Australia is ~20%
Minimum repayment as % of balance (or a dollar floor, usually $25)
Floor amount if percentage is less than this
Additional amount on top of minimum — this saves the most interest
How It Works
Simulates month-by-month repayments using the greater of the percentage-based minimum or dollar floor. Interest is calculated on the daily balance method (rate/365 x days x balance). Extra payments are applied directly to the principal, dramatically reducing total interest.
Frequently Asked Questions
What is the average credit card interest rate in Australia?
The average purchase rate in Australia is approximately 20% p.a. Low-rate cards offer 12-14%, while rewards cards can charge 20-22%. The RBA publishes monthly credit card statistics.
How long does it take to pay off a $5,000 credit card?
Paying only the 2% minimum on a $5,000 balance at 20% interest takes over 30 years and costs about $9,000 in interest. Adding $100/month extra reduces it to about 3 years and ~$1,500 in interest.
Should I do a balance transfer?
Balance transfers (often 0% for 12-24 months) can save significant interest if you commit to paying off the balance within the promotional period. Watch out for balance transfer fees (1-3%) and the revert rate (often 22%+).
Does closing a credit card affect my credit score?
Closing a card can slightly reduce your available credit, which may affect your score. In Australia, the credit reporting system (comprehensive credit reporting) records account openings and closings. The impact is usually minor if you have other credit.
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