Minimum Repayment Calculator

Work out how long it will take to repay your credit card with minimum repayments.

Repayment Details

About Our Minimum Monthly Repayment Calculator

Do you currently have a balance on your credit card? If so, you have two options:

  • Pay it off in full when your next statement arrives
  • Pay less than the total amount owed and carry a balance over to the next month

Ideally, paying in full is, by far, the best option as this ensures that you never have to pay any interest charges on your account. But is this realistic for most people? Not typically. Instead, they are forced to carry a balance from one month to the next.

If you plan on carrying a balance, you need to know how your account works. This includes the following: the current balance owed, the interest rate charged, and the minimum monthly repayment due.

In short, your goal should be to pay off your account's outstanding balance as soon as possible. That being said, you need to know how long it will take you and how much you will pay in interest if you only make the minimum monthly payment. Seeing how long it would take to repay your debt with minimum repayments may be the impetus you need to finally get out of debt.

With our minimum monthly repayment calculator this information is easy to calculate. Take for example a credit card account with the following details:

  • $1,000 balance owed
  • 17% p.a. interest rate
  • Monthly repayment of $100

If this person makes a monthly payment of $100, it will take them 11 months to repay the balance in full. Along the way, interest is being added on to the balance, hence the longer time to pay off the debt.

Take another example:

  • $10,000 balance owed
  • 20% p.a. interest rate
  • Monthly repayment of $200

Paying just $200 back each month on a $10,000 debt means that it will take 105 months to pay it all off, and that's assuming there is nothing added to the balance over that period of time. Repaying the minimum is clearly not a good plan.

To speed up the process, the credit card holder should make the minimum monthly payment along with as much of an overpayment as possible.

Three Reasons to Avoid Only Paying the Minimum

You may be tempted at the thought of only paying the minimum on your credit card balance. While this is your right, there are many reasons why you should avoid this at all costs:

  1. It will take a long time to pay back the money, even if your balance is small
  2. Carrying a credit card balance that uses a lot of your available credit can damage your credit score
  3. You will accumulate a large amount of interest charges every month, making it even more difficult to pay back

If you are in a situation where you are making above minimum repayments, but still have a lot of debt, then you should consider applying for a new balance transfer card with a low interest rate. You can use our balance transfer calculator to work out how much switching will save you. You will find a range of cheap balance transfer deals on this page.