Credit Card Payoff Calculator

Enter your balance, rate, and monthly payment to see your payoff date and total interest cost.

Credit card balance

Your current outstanding credit card balance.

Annual interest rate

Most Australian credit cards charge between 13% and 22% p.a. Check your statement for your card's rate.

Monthly repayment

How much you plan to pay each month. Must exceed the monthly interest charge to reduce your balance.

Extra monthly payment

Optional additional amount above your regular repayment. Even $50 extra per month can save hundreds in interest.

Assumes a fixed monthly repayment and a constant interest rate. Does not include annual fees or other charges. General guidance only — not financial advice.

Debt balance over time

How your credit card balance reduces — hover to inspect

Remaining balance

The faster the line drops, the more of each payment is going towards your principal rather than interest.

Interest vs principal paid

Cumulative interest paid vs debt repaid — hover to inspect

Cumulative interestPrincipal repaid

As your balance shrinks, each monthly interest charge also shrinks — meaning more of every repayment goes towards clearing the debt.

Credit card debt

Why minimum repayments are a debt trap

Australian credit card minimum repayments are typically 2% of the closing balance or $25 — whichever is greater. On a $5,000 balance at 19.99%, the minimum payment starts at around $100. But almost $84 of that is just interest. At this rate, it takes over 8 years to pay off and costs more than $3,500 in interest. Paying $200/month instead clears the same debt in under 3 years — saving over $2,000.

How credit card interest is calculated in Australia

Credit cards charge interest daily on your outstanding balance, but most statements show an annual rate (e.g. 19.99% p.a.). The daily rate is the annual rate divided by 365. Interest is calculated each day and added to your balance at the end of the statement period. If you pay the full closing balance by the due date, no interest is charged — this is called the interest-free period.

Balance transfer cards — the real numbers

Balance transfer offers (0% for 12–24 months) can be a powerful debt-clearing tool — but only if you have a plan. The key: you must pay off the transferred balance before the promotional period ends, otherwise the revert rate — often 21–22% — kicks in on the remaining balance. Most cards also charge a balance transfer fee of 1–3% upfront. Always check whether purchases on the new card earn the 0% rate too (they usually don't).

The avalanche vs snowball method

The avalanche method focuses extra repayments on your highest-rate debt first — mathematically optimal, saving the most interest. The snowball method pays off the smallest balance first — psychologically powerful, giving you quick wins to stay motivated. Research suggests the snowball method leads to higher debt payoff completion rates for many people, even though it costs slightly more in interest. The best method is whichever one you'll actually stick to.

Frequently asked questions

What is the average credit card interest rate in Australia?: Most standard Australian credit cards charge between 17% and 22% p.a. — with 19.99% being extremely common. Low-rate cards typically charge 9–14% but often have annual fees and fewer rewards. Buy now, pay later alternatives (Afterpay, Zip) have their own fee structures. Always check your card's purchase rate on your statement — it may differ from the promotional rate you originally signed up for.
What happens if I only pay the minimum repayment?: Paying only the minimum means almost all of your payment goes to interest — not reducing your balance. As your balance slowly shrinks, so does the minimum payment, which actually slows payoff. On a $5,000 balance at 19.99%, paying minimums only could take 8–10+ years and cost more in interest than your original debt. Paying a fixed, higher amount each month is significantly more effective.
Should I use a personal loan to pay off my credit card?: If you can get a personal loan at a significantly lower rate than your credit card (e.g. 8% vs 20%), a debt consolidation loan can save substantial interest and simplify repayments. The critical discipline: you must stop using the credit card after consolidating, otherwise you end up with both a personal loan AND a new credit card balance. The loan is a tool, not a solution — spending behaviour is the solution.
Does paying off a credit card improve my credit score?: Yes. Your credit utilisation ratio — how much of your available credit you're using — is a significant factor in your Australian credit score (Equifax, Experian, or Illion). Keeping utilisation below 30% (ideally below 10%) of your limit generally improves your score. Paying off a $5,000 balance on a $10,000 limit card drops your utilisation from 50% to 0%, which can meaningfully lift your score within one or two reporting cycles.
Is it better to pay weekly instead of monthly?: Because Australian credit cards calculate interest daily, paying weekly or fortnightly reduces your average daily balance slightly — which means slightly less interest each month. On a $5,000 balance, the difference is relatively small (tens of dollars per year), but over a multi-year payoff it adds up. The bigger impact comes from paying more, not just paying more frequently.
What is a hardship variation and when should I ask for one?: If you're genuinely struggling to make repayments, Australian credit card issuers are required to consider hardship applications under the National Credit Code. You can apply for a temporary repayment reduction, interest freeze, or extended term. This won't damage your credit score when processed as a hardship variation rather than a default. Contact your bank's financial hardship team — they're required to respond within 21 days.