Credit Card Interest Calculator
Calculate how much interest you'll pay on your credit card and how long it will take to pay off. Compare minimum payments against higher payments to see how much you can save.
Credit Card Details
Typical rates: 13-22% (low rate: 13%, standard: 18-20%, store cards: 22%+)
Payment Strategy
How Credit Card Interest Works
Credit card interest is typically calculated daily and charged monthly. Here's what you need to know:
- Interest-free period: If you pay your full balance by the due date, you usually won't pay interest on purchases.
- Compound interest: Interest is charged on your balance, including any previous interest charges.
- Daily calculation: Your annual rate is divided by 365 and applied to your daily balance.
- Cash advances: Interest starts immediately with no interest-free period.
Typical Credit Card Interest Rates in Australia
| Card Type | Purchase Rate | Cash Advance Rate |
|---|---|---|
| Low Rate Cards | 8.99% - 13.99% | 19.99% - 22.99% |
| Standard Cards | 17.99% - 20.99% | 21.99% - 24.99% |
| Rewards Cards | 19.99% - 22.99% | 21.99% - 24.99% |
| Store Cards | 22.99% - 25.99% | 24.99% - 29.99% |
The Minimum Payment Trap
Paying only the minimum is one of the most expensive ways to manage credit card debt:
Example: $5,000 at 19.99% Interest
Minimum Payments Only (2% or $25)
- Time to pay off: 27+ years
- Total interest: $7,500+
- Total paid: $12,500+
Fixed $200/month
- Time to pay off: 31 months
- Total interest: $1,100
- Total paid: $6,100
Paying $200/month instead of minimum payments saves $6,400 and 24 years!
Strategies to Pay Off Credit Card Debt Faster
1. Pay More Than Minimum
Even an extra $50-100 per month significantly reduces payoff time and interest paid.
2. Balance Transfer
Transfer to a 0% balance transfer card and pay off during the promotional period.
3. Avalanche Method
Pay off highest interest rate debt first to minimise total interest paid.
4. Stop Using the Card
Freeze the card and switch to debit while paying off the balance.