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Credit card interest calculator
Work out how much interest you may pay on a credit card balance, based on your interest rate and monthly payments.
Why use an interest calculator?
If you’re paying interest on a credit card balance, you might like to calculate:
- the potential cost of your borrowing
- how long it could take to repay your balance
- how much you could save by making higher monthly payments.
Work out your credit card interest
Just be aware this calculator provides an illustration only. Your actual borrowing costs can vary, depending on how you use and manage your credit card over time.
This calculator is a guide only, calculated using approximate minimum payment rates that may vary by product or lender. We assume your interest rates always stay the same, and interest and payments are processed at the same time each month.
Understanding and minimising costs
Frequently asked questions
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The Annual Percentage Rate (APR) helps you to estimate the cost of your credit card borrowing each year, inclusive of standard account fees. The higher the percentage, the greater the borrowing cost.
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Interest is calculated daily and charged to your credit card statement when it’s produced each month.
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There are scenarios where you won’t be charged interest on your credit card balance:
- You can take advantage of up to 56 days interest free on card purchases, as long as you pay off your balance in full every month.
- If a 0% interest rate applies to your full balance. Just make sure you know when any promotional or introductory rates expire, as that’s when interest will start to apply.
Otherwise, there are things you can do to minimise your borrowing costs:
- Repay more than the minimum each month. Payments will be allocated to your highest interest balances first, helping to minimise the amount of interest you’ll pay overall.
- Explore other borrowing options that could help you to consolidate your debts and manage your interest costs.
- Consider transferring your balance to a credit card with a lower interest rate. Just be aware that transfer fees may apply.