UK Credit Card Payoff Calculator
See how long it takes to clear a credit card on the minimum payment alone, and how many years and how much interest you save by paying a fixed amount extra each month.
At these settings the minimum payment only covers the monthly interest, so the balance never falls. Increase the minimum percentage or the extra payment to clear the card.
- Paying only the minimum
- With £50/month extra
Paying only the minimum, the balance falls to £0 over 28 years and 3 months with £5,240 of interest. Adding £50 a month clears it in 3 years and 11 months and saves £4,037.
| Year | Balance paying the minimum | Balance with the extra |
|---|---|---|
| 0 | £3,000 | £3,000 |
| 1 | £2,659 | £2,091 |
| 2 | £2,357 | £1,285 |
| 3 | £2,089 | £571 |
| 4 | £1,852 | £0 |
| 5 | £1,641 | £0 |
| 6 | £1,455 | £0 |
| 7 | £1,290 | £0 |
| 8 | £1,143 | £0 |
| 9 | £1,013 | £0 |
| 10 | £898 | £0 |
| 11 | £796 | £0 |
| 12 | £706 | £0 |
| 13 | £625 | £0 |
| 14 | £554 | £0 |
| 15 | £491 | £0 |
| 16 | £436 | £0 |
| 17 | £386 | £0 |
| 18 | £342 | £0 |
| 19 | £303 | £0 |
| 20 | £269 | £0 |
| 21 | £238 | £0 |
| 22 | £211 | £0 |
| 23 | £187 | £0 |
| 24 | £165 | £0 |
| 25 | £138 | £0 |
| 26 | £105 | £0 |
| 27 | £65 | £0 |
| 28 | £14 | £0 |
| 28 | £0 | £0 |
| Balance owed | £3,000 |
|---|---|
| First minimum payment | £85 |
| of which interest | −£55 |
| Interest paying the minimum | −£5,240 |
| Interest with your extra payment | −£1,203 |
| Interest saved | −£4,037 |
Information
A credit card charges interest on whatever you owe, and adds it to the balance. Each month you have to pay at least a minimum, and on most UK cards that minimum is small: roughly the interest for the month plus about 1% of the balance, with a floor of a few pounds. Because the 1% slice shrinks as the balance falls, paying only the minimum drags on for decades, and the interest can end up larger than the amount you first borrowed. The calculator above runs the same day-by-day interest the card does, so the figures match a real statement to within rounding.
Why the minimum is a trap. On the first payment, most of what you pay is interest and only a little comes off what you owe. As the balance drops, the minimum drops with it, so progress slows to a crawl. A fixed extra payment breaks the cycle: it goes straight against the balance every month regardless of how low the minimum falls, so it clears the card years sooner and cancels most of the interest.
Should I pay off my credit card or invest instead? A card charging around 24% costs you far more than a savings account or a typical investment earns after tax, so clearing high-interest card debt is usually the first priority, ahead of investing. The honest exceptions are keeping a small emergency fund so a surprise bill does not go back on the card, and any employer pension match you would lose by diverting the money. Beyond those, the maths favours the guaranteed return of not paying 24% interest. Open the full simulator to weigh clearing the card against saving, pension contributions, and the rest of your picture together.
What is not in this calculator. It assumes a single interest rate for the whole balance, so it does not model a 0% purchase or balance-transfer window, a cash advance at a higher rate, or missed-payment charges. It uses the common "interest plus 1% of the balance, floored at £5" minimum; some cards ask for a flat 2% or 3% of the balance instead, which you can set in the Advanced section. The full simulator's Credit Card module models a promotional 0% window and what happens when it ends.
FAQ
- Why does paying only the minimum take so long?
Your minimum is roughly this month's interest plus about 1% of the balance. As the balance falls, that 1% slice shrinks too, so the amount coming off what you owe gets smaller every month. On a typical card the balance can take over 25 years to clear this way, and the interest paid can end up close to what you originally borrowed.
- How is the minimum payment worked out?
This calculator uses the common UK shape: the greater of a small cash floor (£5 by default) and the sum of that month's interest plus 1% of the balance. You can change the percentage and the floor in the Advanced section to match your own card, some cards ask for a flat 2% or 3% of the balance instead.
- Should I pay off my credit card or save the money instead?
A card charging around 24% costs you far more than a savings account or a typical investment earns, so clearing high-interest card debt is usually the first priority, ahead of investing. The exceptions are keeping a small emergency fund and any employer pension match you would lose. Use the Open full simulator button to weigh clearing the card against saving and pension contributions together.
- Does this handle a 0% balance-transfer or purchase deal?
Not in this calculator, it assumes a single interest rate for the whole balance. The full simulator's Credit Card module models a 0% promotional window and what happens when it ends.
Sources
- Effective interest rates on consumer credit (Bank of England)
- Options for paying off your debts (GOV.UK)
Disclaimer
Not financial advice. The figures above are arithmetic on the inputs you provided. Your card's actual minimum-payment rule, promotional rates, and charges may differ; check your statement and card agreement. Consult a qualified debt adviser, or a free service such as those on GOV.UK, before making a decision based on these numbers.
