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Assumes a fixed monthly payment and monthly interest of APR/12. Real card interest compounds daily and minimum payments shrink as the balance falls, stretching payoff far longer. Not financial advice.
What The Credit Card Repayment Calculator Works Out
- Time to clear: the balance is run month by month, adding interest at APR divided by 12 and taking off your fixed payment, until nothing is left. GBP 2,000 at 20% APR with GBP 100 a month clears in about two years; at GBP 200 a month it clears in under a year with the interest bill cut to a third.
- Total interest paid: the sum of every month's interest charge. Typical UK card APRs run from around 20% on mainstream cards to 30% to 40% on credit-builder cards.
- Total repaid: the starting balance plus all interest, plus any new spending you add in advanced mode.
- New spending each month (advanced): keeps using the card while you pay it down. If spending plus interest is more than your payment the balance never falls and the calculator warns you.
- Paying only the minimum (advanced): UK minimums are usually that month's interest plus 1% of the balance, with a floor of around GBP 5 to GBP 25. Because the payment shrinks as the balance falls, a GBP 2,000 balance can take over 20 years to clear and cost more in interest than the original debt. Fixing your payment at today's minimum is the single cheapest change most cardholders can make.
- 0% balance transfer (advanced): moves the debt to a card charging no interest for a promotional period, typically 12 to 30 months, for a one-off fee of about 3% to 5% of the balance. The fee is added to the balance, interest is zero during the promo, then your entered APR applies to whatever is left.
- Saved by transferring (advanced): the interest on your current card minus the transfer fee and any post-promo interest. If it is negative the fee costs more than the interest it avoids, which happens with small balances or short payoff times.
- Year-by-year schedule (advanced): what you paid, how much of it was interest, and the balance left at the end of each year. Free debt advice is available from StepChange, National Debtline and Citizens Advice if payments are not covering the interest.
Source and further reading: MoneyHelper.