How the credit card repayment calculator works
Each month the calculator adds interest to your balance, then takes off your payment, and repeats until the balance reaches zero. It does this twice: once with the fixed payment you choose, and once paying only the minimum, so you can see the difference side by side. It assumes you don't spend anything more on the card and that the rate stays the same.
Card APRs include the effect of interest being charged monthly, so the calculator converts the APR to a monthly rate like this:
24.9% APR = 1.2491/12 − 1 = 1.87% a month
How minimum payments are worked out
Under Financial Conduct Authority rules, a credit card's minimum payment must at least cover that month's interest, fees and charges plus 1% of the balance. Many cards use exactly that, with a floor of £5 or £25. Others use a flat percentage such as 2.5% of the balance if that's higher. You can change the rule under "Minimum payment rule".
The catch is that the minimum falls as your balance falls. That keeps payments low but stretches the debt out for decades, with most of what you pay going on interest.
Worked example: £3,000 at 24.9% APR
| £150 a month | Minimum only | |
|---|---|---|
| First payment | £150.00 | £86.10 |
| Time to clear | 2 years 2 months | 28 years 5 months |
| Total interest | £792.64 | £5,394.92 |
The first minimum payment is £56.10 of interest plus £30 (1% of £3,000). Sticking with the minimum costs more in interest than the original balance. Paying a fixed £150 instead saves £4,602 and clears the card over 26 years sooner.
On a smaller balance of £2,000 at 19.9% APR, paying £100 a month clears it in 2 years 1 month with £403.66 of interest. Paying the minimum takes 24 years 4 months and costs £2,853.86.
Persistent debt rules
If over 18 months you pay more in interest, fees and charges than you pay off the balance, the FCA says you're in persistent debt. Your card provider must contact you and suggest paying more. After 36 months, if you're still in persistent debt, it must offer you a way to clear the balance over a reasonable period, typically three to four years. If you can't afford that, it should help you, for example by reducing or freezing interest. A card can be suspended if you don't respond.
Ways to pay off credit card debt faster
- Pay a fixed amount, not the minimum. Set a direct debit for a fixed sum so your payment doesn't shrink as the balance falls.
- Move it to a 0% balance transfer card. You'll usually pay a transfer fee of around 3%, but every penny of your payment then goes off the balance. Divide the balance by the number of 0% months to see what to pay. Enter 0 as the APR above to try it.
- Clear the most expensive card first. If you have several cards, pay the minimum on all of them and put any extra towards the highest APR.
- Consider a loan. A personal loan at a lower APR has a fixed end date. Compare it on the loan calculator.
- Get free help. If you're struggling, StepChange, National Debtline and Citizens Advice give free, confidential debt advice.
Once the card is cleared, redirect the same monthly payment into savings. The savings calculator shows how quickly it builds up, and the compound interest calculator shows interest working for you instead of against you.
Frequently asked questions
How long will it take to pay off £3,000 on a credit card?
At 24.9% APR, paying £150 a month clears £3,000 in 2 years 2 months with £792.64 of interest. Paying only a minimum of interest plus 1% takes about 28 years 5 months and costs £5,394.92 in interest.
What is the minimum payment on a credit card?
FCA rules say the minimum must at least cover the month's interest, fees and charges plus 1% of the balance. Many cards also set a floor of £5 to £25, or use a percentage such as 2.5% of the balance.
Is it bad to only pay the minimum on a credit card?
It won't harm your credit score as long as you pay on time, but it's very expensive. Most of the payment goes on interest, so the debt can take decades to clear.
What happens if I'm in persistent debt?
If you've paid more in interest and charges than off your balance over 18 months, your provider must contact you about paying more. After 36 months it must help you clear the balance in a reasonable time, and may suspend the card if you don't respond.
Is a balance transfer worth it?
Usually, if you can clear the balance within the 0% period. A typical fee is around 3% of the balance, which is often far less than a year's interest at a standard card APR.
Last reviewed October 2026 using 2026/27 figures. This calculator gives an estimate for guidance only.