Credit Card Payoff Calculator
Find out how long it will take to pay off your credit card and how much interest you will pay.
Disclaimer
This calculator provides estimates for general information purposes only. Results should not be relied upon as professional financial, tax, or legal advice. Tax rates and thresholds are based on publicly available ATO data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.
Frequently Asked Questions
Why does paying minimums take so long?
What is the best strategy to pay off credit card debt?
What is Credit Card Payoff?
A credit card payoff calculator shows how long it will take to pay off your credit card balance and how much you'll pay in interest at your current payment level.
How this calculator works
The calculator simulates month-by-month payments: each month, interest accrues on the remaining balance at your card's annual rate divided by 12. Your payment covers the interest first, with the remainder reducing the principal. It also simulates minimum payments (2% of balance or $25, whichever is greater) to show how dramatically longer and more expensive the minimum-only approach is — often 30-40+ years for a typical balance.
Why Minimum Payments Are a Trap
Credit cards typically charge 18-24% pa. On a $5,000 balance, monthly interest alone is $75-$100. Minimum payment (~2% of balance) covers little more than interest, leaving negligible principal reduction. A $5,000 balance paid at minimum only takes 25-30 years and costs $10,000+ in interest. Even doubling the minimum cuts time and interest by 60-70%.
Typical AU Credit Card Rates 2025-26
Standard purchase rate: 18-22% (most major banks). Cash advance: 21-24% — interest from day 1 (no interest-free period). Premium cards: 19-25% but with rewards. Low-rate cards: 10-15% (no rewards). Balance transfer offers: 0% for 6-30 months (then reverts to 22%+). Average AU credit card debt per cardholder: ~$3,500. Average interest paid annually if minimum-only: $700-$1,200.
Balance Transfer Strategy
Transfer existing debt to a 0% interest card for 12-30 months. Pay off aggressively during 0% period. Catch: usually 1-3% transfer fee on the transferred balance. Catch 2: new purchases on the card are charged at high purchase rate immediately. Catch 3: must pay off BEFORE the 0% period ends or remaining balance reverts to 22%+ rate. Works only if you have the discipline NOT to add new debt.
Interest-Free Periods
Many cards offer 44-55 days interest-free if you pay the FULL balance every statement. Miss one payment by even a day → interest charged BACK to purchase date on the full balance. The 'interest-free' applies only to purchases, never cash advances. Strategy: use card for transactions, direct-debit full balance from a high-interest savings account, earn rewards + savings interest, zero interest cost.
Closing Paid-Off Cards
Banks ASSESS the LIMIT (not the balance) for home-loan serviceability — a $20k unused card limit reduces borrowing capacity by ~$50k-$100k. If you're applying for a mortgage soon, close unused cards. Otherwise, keeping cards open maintains credit history length (improves credit score) and lowers utilisation ratio.
When You Need More Help
If you have $20k+ credit card debt with multiple cards and can't see a path to zero: contact the National Debt Helpline (1800 007 007) — free financial counselling. Options: hardship variations (banks must offer), debt consolidation loans (cheaper rates), Part IX debt agreements (formal settlement). Don't ignore — interest doubles balance every 4-5 years at typical rates.
Official Sources
All calculations are performed in your browser — your data never leaves your device. Results are for general guidance only and should not be considered professional financial advice.
Built and maintained by Konstantin Iakovlev. Data sourced from the ATO and official Australian government sources.