Credit Card Payoff Calculator
From balance, APR and monthly payment, compute the months, total paid and total interest to clear the card.
Input Data
Results
At a glance:Paying a fixed amount each month, monthly interest = balance x APR/12; next balance = balance + interest - payment, repeated until cleared. Months, total paid and total interest are output. Example: 20,000 at 24%, pay 800/mo → ~29 months, total paid ~23,220, interest ~3,220. Compare with minimum payment that can stretch to decades. WARNING: if payment ≤ first-month interest, never clears (tool flags it). To cut cost: clear in full, or move to a lower-rate loan / 0% balance transfer. Simplified model. Education, not advice.
Formula
Monthly rate r = APR% ÷ 12.
Each month: balance = previous balance × (1 + r) − monthly payment.
Repeat until balance ≤ 0; months = count, total paid = sum of payments.
Total interest = total paid − original balance.
If monthly payment ≤ first month's interest, the balance never clears.
$$\\text{Monthly rate}\\; r = \\dfrac{\\text{APR}\\%}{12}$$How to Use
- Enter the current balance.
- Enter the APR.
- Enter the fixed monthly payment to see months and total interest.
FAQ
How is credit card interest calculated?
If you don't clear the balance in full within the grace period, the bank charges monthly interest = outstanding balance x APR / 12, compounding. Paying only the minimum covers mostly interest, so principal falls slowly.
How high is a Hong Kong credit card APR?
HK credit-card revolving APRs commonly exceed 30%; the HKMA example uses about 2.5% per month (~35% effective annual). Banks must disclose APR uniformly per the Code of Banking Practice.
What is the minimum payment trap?
Hong Kong minimum payment is typically 'all interest and fees + at least 1% of principal' (or ~HK$50, whichever higher). Paying only that avoids late fees but reduces principal extremely slowly — repayment can stretch over decades with total interest multiple times the principal.
How can I pay off faster and cheaper?
Pay more than the minimum each month (big interest savings); or move the balance to a lower-rate personal loan or 0% balance-transfer promo; best, clear in full to use the interest-free period. Avoid re-spending on the cleared card.
Why might the calculator say it can't be paid off?
When the monthly payment is ≤ the first month's interest, the balance grows instead of shrinking and interest accrues without limit. Raise the monthly payment above the interest to start reducing principal.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.