Calculator // Debt Clearance

Credit Card Payoff

Enter your balance, APR and target clearance date. See the exact monthly payment - and how much minimum payments really cost over time.

Monthly payment required to pay off in 12 months
-

Total Paid

-

Principal + Interest

Total Interest

-

Cost of this debt

Interest Saved

-

vs minimum payments

Your Debt
Payoff Target

Minimum-payment estimate: the highest of 2% of the balance, monthly interest plus 1% of the balance, or 25 in your selected currency. Your issuer may use different terms. Interest is estimated as APR divided by 12; fees and new spending are excluded.

Why this matters
Enter your balance and APR to see what you need to pay each month and what paying only the minimum costs.
Payoff Scenarios
Timeframe Monthly Payment Total Interest Total Paid Interest Saved
Balance Over Time - Your Plan vs Minimum Payments
Month-by-Month Schedule
Month Opening Balance Payment Interest Principal Closing Balance

The Minimum Payment Trap

Minimum payments are set low, so paying only the minimum keeps you in debt for years. Much of each payment goes on interest rather than the balance. A fixed, higher payment cuts the balance faster: each month the balance falls faster, the interest charge shrinks, and the saving compounds.

Questions about your numbers?

If your card has an unusual rate or fee structure, or the figures don’t match what your provider shows, get in touch. Email is optional. You only need it if you want a reply.

Please use this form if you believe any figures are incorrect or would like clarification. Email is optional. You only need it if you want a reply. Messages are sent through Web3Forms. Privacy details.

Frequently Asked Questions

How is the monthly payoff amount calculated?

▼
The monthly payment uses the standard amortisation formula: M = P × r(1+r)n / ((1+r)n − 1), where P is the outstanding balance, r is the monthly interest rate (APR ÷ 12 ÷ 100), and n is your target months. Paying this amount clears the balance and interest exactly on your target date.

What counts as a minimum payment on a UK credit card?

▼
UK rules generally require payments to cover interest, fees and charges plus at least 1% of the outstanding balance. This example uses the highest of 2% of the balance, interest plus 1%, or a 25-currency-unit floor. The floor is a modelling assumption, not a universal legal requirement. Check your issuer’s terms.

Should I clear credit card debt before investing?

▼
Almost always yes. Credit cards charge 20–30% APR. No investment reliably returns that after tax. Clearing the balance is a guaranteed, risk-free return equal to the interest rate. Once the card is clear, redirect the monthly payment directly into your ETF or savings plan — use the Budget Tracker to model the transition.

How much does paying more than the minimum actually save?

▼
Use the live comparison above to see the interest difference between your fixed repayment plan and the modelled minimum. The result assumes constant interest, no new spending and no additional fees.