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Credit Card Interest Calculator (USA & UK)

See how credit card interest compounds and find the fastest way to clear your balance.

Time to Pay Off 0 Months
Total Interest Paid $0.00
Total Amount Paid $0.00

Notice: This calculation is for estimation purposes only. Credit card interest is calculated daily by most lenders. This tool uses monthly compounding as an estimate.

What's Next?

Debt Consolidation

Compare credit card rates with a lower-interest personal loan.

Payoff Strategies

Learn about Avalanche vs Snowball methods.

Check Your DTI

See how your debt affects your borrowing power.

The Cost of Credit Card Debt

Credit cards are one of the most expensive ways to borrow money due to high interest rates and monthly compounding. If you only make the minimum payment, most of your money goes toward interest rather than reducing your principal balance. This can lead to debt that lasts for decades.

Usage Example: Paying Off a $5,000 Balance

If you have a $5,000 balance on a card with a 19.99% APR and only pay the 2% minimum payment, it will take you over 22 years to pay off the debt, and you will pay over $7,000 in interest alone. By switching to a fixed payment of $200 per month, you could be debt-free in less than 3 years and pay only about $1,500 in interest.

Frequently Asked Questions

How is credit card interest calculated? +
Most credit cards use the "Average Daily Balance" method. Your APR is divided by 365 to get a daily interest rate. This rate is then applied to your balance every day, and the total interest is added to your account at the end of each billing cycle.
What is a minimum payment? +
The minimum payment is the lowest amount you can pay to avoid late fees and keep your account in good standing. It is usually calculated as 1-3% of your total balance plus any interest and fees. Paying only the minimum is the slowest and most expensive way to pay off debt.
What is the "Avalanche Method" for paying off debt? +
The Avalanche Method involves paying off the credit card with the highest interest rate first while making minimum payments on others. This strategy saves you the most money in interest over time.
How does a balance transfer work? +
A balance transfer allows you to move high-interest debt to a new card with a 0% introductory APR. This can help you pay off the principal balance faster, but be aware of balance transfer fees (usually 3-5% of the amount moved).