Credit Card Repayment Calculator

Use this simple calculator to find out how much the repayments would be on various credit card balances, the interest charged and how long it will take your to pay the credit card off.

How do credit card repayments work?

Unlike most other kinds of debt such as car finance or P&I home loan repayments, credit cards have a dynamic repayment model where the repayment is based on a percentage of the balance owed each month – between 2 and 3% per month dependent on the lender. This balance is charged which covers the interest as well as reduces a portion of the credit card balance, which in turn will reduce the following months minimum repayment down. Because of this model there isn’t an exponential decrease in debt over time as the repayment will keep reducing in line, meaning that it can take your a significant period of time to pay down the entire debt based on the minimum repayment.

Due to the way repayments are calculated on credit cards it is often suggested to make either a consistent monthly repayment on your debt instead of the minimum, or additional repayments on top of the minimum so you can accelerate paying down the balance owed. This usually also makes good financial sense due to interest rates on credit cards generally being considerably higher than other kinds of debt.

Do you need assistance with finding out how much the repayments would be on a credit card? Speak with a broker today.

Disclaimer:  The calculations do not take into account all fees and charges. The results provided by this calculator are an estimate only, and should not be relied on for the purpose of making a decision in relation to a loan. Interest rates and other costs can change over time, affecting the total cost of the loan. Borrowers should consider discussing their individual situation with a qualified Australian Credit Licensee or authorised Credit Representative.