Quick answer: A 10,000 card balance at 24% APR paid at 500 a month is cleared in 26 months with 2,898.73 in interest; to clear it in 24 months you would pay 528.71 a month.
How it's calculated
Each month the card charges interest of balance × APR ÷ 12; your payment covers that first and the rest reduces the balance. At 24% APR a 10,000 balance costs 200 in the first month.
At a fixed payment M the number of months is n = −ln(1 − r·B ÷ M) ÷ ln(1 + r), with r = APR ÷ 12. The calculator runs the schedule month by month, so the last, smaller payment is exact. To clear the card in n months, pay M = B·r ÷ (1 − (1 + r)^−n).
Paying only the minimum (often a small percentage of the balance) can stretch repayment over many years. Islamic credit cards may charge a profit or a fixed monthly fee instead of interest; enter the APR the issuer discloses.
Several cards? The multiple cards calculator compares the avalanche and snowball methods.
Worked examples
- 10,000 at 24%, 500 a month: 26 months, interest 2,898.73
- 10,000 at 24%, 300 a month: 56 months, interest 6,644.17
- 10,000 at 24%, clear in 24 months: M = 528.71, interest 2,689.06
Frequently asked questions
Why does a small payment take so long?
Most of a small payment goes to interest. At 24% APR on 10,000, the first 200 of every payment is interest, so a 300 payment reduces the balance by only 100 in the first month.
Should I stop using the card while paying it off?
The calculation assumes no new purchases. New spending adds to the balance and extends the time to pay it off.
Is a balance transfer or personal loan cheaper?
Often, if the rate is lower and fees are small. Compare with the debt consolidation calculator.
How is credit card interest charged?
Usually daily on your balance and added monthly. This calculator uses the common estimate of balance × APR ÷ 12, so your statement may differ slightly.
What if my payment doesn't cover the interest?
The balance never falls, so the debt can't be cleared. The calculator asks for a bigger payment in that case.
Can I avoid interest altogether?
Yes. On most cards, paying the full statement balance by the due date means no interest on purchases. Cash withdrawals usually start charging straight away.