Credit Card Repayment Calculator

Credit card debt is one of the most expensive forms of borrowing available to UK consumers. With typical APRs ranging from 18% to 30% or higher, even modest balances can take years or decades to clear if you only make minimum payments. Understanding exactly how long it will take to pay off your credit card, and how much interest you will pay, is the first step toward taking control of your finances. The minimum payment on most UK credit cards is calculated as a percentage of the outstanding balance (typically 2-3%), subject to a minimum floor of around GBP 25. As your balance decreases, so does the minimum payment, which is why minimum-payment repayment takes so long. In the early months, most of your payment covers interest charges rather than reducing the balance. Over time, the declining minimum payment means you repay less and less each month. The FCA introduced persistent debt rules in 2018, requiring credit card providers to identify customers who have paid more in interest and charges than they have repaid of their balance over 18 months. Providers must contact these customers and help them increase payments. After 36 months in persistent debt, providers must offer options to repay more quickly, including reducing or waiving interest charges. This calculator shows you the true cost of credit card debt at minimum payments and compares it with the savings from making fixed or higher monthly payments. The difference is often dramatic: paying just GBP 50 more per month on a GBP 5,000 balance can save thousands in interest and cut years off the repayment time.

How to Use This Calculator

To calculate your credit card repayment timeline: 1. Enter your current credit card balance. This is the total amount you owe, including any accumulated interest. You can find this on your latest statement or in your online banking. 2. Enter the annual interest rate (APR). This is shown on your credit card statement and in your online account. If you have a promotional 0% rate, use the rate that will apply after the promotional period ends for a realistic long-term view. 3. Set the minimum payment percentage. Most UK credit cards use 2-3% of the balance (with a floor of GBP 25). Check your card terms if you are unsure. The default of 2.25% is typical for many UK providers. 4. Optionally, enter a fixed monthly payment. If you pay a set amount each month rather than the minimum, enter it here. This shows you the faster repayment timeline and interest savings. Leave this at zero to see the minimum payment scenario. 5. Review the results. The calculator shows months and years to pay off, total interest charged, and a comparison showing what happens if you pay GBP 50 more than your current payment. Use this to decide on a repayment strategy.

How It Works

Credit card repayment is calculated month by month because the minimum payment changes as the balance decreases. Each month, interest is charged on the outstanding balance: Monthly Interest = Balance x (APR / 12 / 100). For a GBP 5,000 balance at 22% APR, the first month's interest is GBP 5,000 x (22 / 12 / 100) = GBP 91.67. If using minimum payments, the payment is: Monthly Payment = max(Balance x Minimum%, GBP 25). For 2.25% of GBP 5,000, that is GBP 112.50. Of this, GBP 91.67 covers interest and only GBP 20.83 reduces the balance. If a fixed payment is specified, that amount is used each month instead. This accelerates repayment because the payment stays constant while the interest portion decreases. The calculator also runs a comparison scenario that adds GBP 50 to whatever payment method you chose, showing the potential savings. The simulation caps at 600 months (50 years). If the balance is not cleared within this period, the calculator reports the maximum.

Worked Examples

If you are carrying credit card debt, consider these strategies to reduce the cost: Balance transfer cards offer 0% interest for a promotional period (typically 12-29 months), giving you time to repay without accruing interest. You will usually pay a transfer fee of 1-3% of the balance, but this is far less than the interest you would otherwise pay. Make sure you can clear the balance before the promotional rate ends. If a balance transfer is not available, focus on paying a fixed amount each month rather than the minimum. Set up a standing order for a fixed payment that you can afford, and treat your credit card like a loan with regular repayments. Another option is consolidating your debt into a personal loan at a lower interest rate. Creating a budget can also help you find extra money each month to put towards repayments. If you are struggling with credit card debt, free help is available. StepChange (0800 138 1111) provides free online and telephone debt advice. Citizens Advice offers face-to-face appointments. The National Debtline (0808 808 4000) provides free expert advice on dealing with debt. Do not pay for debt management services when free alternatives exist. Under FCA rules, if you are in financial difficulty, your credit card provider must treat you fairly and may offer options such as reduced interest rates, frozen charges, or affordable repayment plans.