Credit Card Payoff Calculator
UK credit cards charge around 22%–35% APR — by far the most expensive everyday borrowing most people will ever do. This calculator shows the painful reality of paying just the minimum each month versus committing to a fixed monthly payoff, so you can see how much interest and time a slightly bigger payment actually saves.
How is this calculated?
Each month, interest is added at the monthly rate (APR ÷ 12) and the payment is deducted. The minimum-payment scenario typically uses 1% of the balance plus that month’s interest, with a £5 floor — common UK card terms. The fixed-payment scenario applies the same amount every month until the balance hits zero. Months to clear and total interest are returned for both, alongside the difference. Promotional 0% balance transfer rates can be modelled by setting APR to 0 for the promo window.
Frequently Asked Questions
Why is paying only the minimum so bad?
Because the minimum is calibrated to keep the lender's interest income flowing. On a £3,000 balance at 25% APR, paying only the minimum can take over 25 years to clear and cost more than £4,000 in interest — well above the original debt itself. Paying a flat £100 a month clears the same balance in around 41 months.
Should I use a 0% balance transfer card?
If you can clear the balance within the 0% window, almost always yes — even after the typical 2%–3% transfer fee. Set up a direct debit for (balance + fee) ÷ promo months so you know you'll finish before the standard rate kicks in. Don't spend on the new card; the rate on purchases is usually steep.
Avalanche or snowball?
Avalanche (highest APR first) saves the most interest mathematically. Snowball (smallest balance first) gives faster psychological wins because debts disappear quickly. The right answer is whichever one you actually stick with — momentum matters more than mathematical optimality.
Will paying off a card hurt my credit score?
No, the opposite. Lower credit utilisation (balance ÷ limit) helps your score, and a long-standing card showing on-time payments is a positive signal. Keep paid-off cards open unless you're paying an annual fee — closing them can shrink your available credit and shorten your average account age.
Last updated: May 2026 · Rates sourced from HMRC