Credit Card Payoff Calculator
Minimum payments are designed to keep you in debt longer. Use three modes — fixed payment, minimum-only, or set a target date — to find the fastest, cheapest path to zero.
To find the required monthly payment: PMT = (Balance × monthly rate) / (1 − (1 + monthly rate)^−n). A $5,000 balance at 22.99% APR paid off in 36 months requires ~$190/month and costs ~$840 in interest. Minimum-only payments at 2% take 30 years and cost $7,700+ in interest.
⚠️ The Minimum Payment Trap — By the Numbers
$5,000 balance · 22.99% APR · 2% minimum
- ⏱ Time to pay off: 29+ years
- 💸 Total interest: $7,700+
- 💳 Total paid: $12,700+
Same balance · fixed $200/month
- ⏱ Time to pay off: 2.5 years
- 💸 Total interest: ~$1,200
- 💰 Savings: $6,500+ and 27 years
Credit Card APR by Country (2024)
Credit card interest rates vary significantly by country, reflecting different central bank rates, regulatory frameworks, and competitive dynamics.
| Country | Avg Standard APR | 0% Balance Transfer | Transfer Fee | Regulation |
|---|---|---|---|---|
| 🇺🇸 United States | 22–25% | Yes — 12–21 months | 3–5% | TILA / CARD Act 2009 |
| 🇬🇧 United Kingdom | 20–25% | Yes — up to 30 months | 2–3% | Consumer Credit Act / FCA |
| 🇨🇦 Canada | ~19.99% | Limited offers | 1–3% | Federal / Provincial CPA |
| 🇦🇺 Australia | ~19.99% | Some cards (12–20 mo) | 1–3% | National Consumer Credit Protection |
| 🇩🇪 Germany | 14–18% | Rare | N/A | EU Consumer Credit Directive |
| 🇫🇷 France | 15–20% | Limited | N/A | Loi Lagarde / EU Directive |
| 🇯🇵 Japan | 12–18% | Rarely available | N/A | Installment Sales Act |
How Credit Card Interest Is Calculated
Most credit cards in the US, UK, Canada, and Australia use the Average Daily Balance method:
- Divide your APR by 365 to get the daily periodic rate (DPR)
- Calculate the average daily balance for the billing cycle
- Multiply: DPR × average daily balance × days in billing cycle = interest charge
Example: $3,000 balance at 22.99% APR over a 30-day cycle = (0.2299 / 365) × $3,000 × 30 = $56.70 in interest for that month.
UK vs US: Key Differences
The US CARD Act (2009) introduced important consumer protections: minimum payments must cover at least 1% of principal + interest; issuers must give 45 days notice of rate increases; and statements must show how long minimum payments take. The UK's FCA similarly requires clear disclosure of total charges. The UK uniquely offers balance transfers up to 30 months — longer than anywhere else globally — due to intense competition between Barclaycard, MBNA, and Lloyds.
Australia's Comparison Rate
Australia requires a Comparison Rate (not just APR) on all credit products — this rate includes annual fees and other charges, making it easier to compare total cost. A card advertised at 19.99% APR might have a Comparison Rate of 21.5% once annual fees are factored in. This is more informative than US/UK APR disclosures, which typically exclude fees.