Credit Card Interest Calculator – Develop A Path To Paying Off Your Balance

Determine how long it will take to repay your credit card debt with a credit card interest calculator. Monzi’s here to explain all that you need to know. Learn more about rates, minimum repayments, balance transfers and everything in between. Let’s go.

Please note, certain ideas and products presented in this article may not be offered by Monzi nor the lenders we work with. This article presents only general information. Consider seeking professional financial, taxation, legal or other advice to check how the information and ideas presented on this website relate to your unique circumstances.

Credit cards explained

Credit cards are a useful financial tool that allows you to borrow up to a pre-approved credit limit. With this, you can use your card to make purchases whenever you need. However, this comes with the condition that you must repay any money you spend each month. Otherwise, your provider will charge interest on what you owe.

Given this, credit cards can be a convenient option to help you manage short-term cash flow issues. However, if you cannot budget effectively and allow debt to accumulate, then they can often become a headache. In these situations, a credit card interest calculator may be able to help. Read on to find out more about how they may assist you if you’re dealing with credit card debt.

What is a credit card interest calculator?

These days, there are dozens of calculators online. Whether you’re after a construction loan calculator or a personal loan calculator, there is no shortage of options. However, you may not be aware of a credit card interest calculator.

In short, these tools are available online from a range of credit card providers and can assist you in mapping out a path to paying off your outstanding credit card balance. With this, the calculator will ask you to provide a handful of details related to your current credit card and balance. From there, the calculator will generate estimates of how long it may take you to pay off your balance.

While that covers the basics, there is more to know. Read on as Monzi explores the ins and outs of credit card interest calculators now. Let’s go.

What information is required with a credit card interest calculator?

So, let’s cover what you’re here to learn about. Credit card interest calculators, otherwise referred to as a credit card repayment calculator, will allow you to input information about your debt to determine how long it may take for you to repay what you owe.

As a guide, you typically must provide the following:

Current balance

Firstly, you’ll have to state how much you owe. After all, that’s what you’re looking to repay. In any case, you will usually only be able to calculate your repayments on one card at a time. In other words, if you’ve got credit card debt spread across multiple cards, then you may need to complete multiple calculations. Alternatively, tools such as debt consolidation calculators may come in handy.

Interest rate

Next, you’ll need to supply your interest rate. Typically, this will be expressed as an annual percentage and should be listed in your credit agreement. Along with your outstanding balance, your interest rate is arguably the most important factor, given that it will determine how much you must pay on top of what you owe.

Minimum monthly payment

The final piece of information required may vary depending on the calculator you are using. In some cases, you will be asked to provide the minimum monthly payment that you can afford. In others, you may need to supply the minimum monthly payment outlined in your credit agreement. This amount essentially operates in the same way as a loan repayment.

What information will a credit card interest calculator provide?

Once you have entered all the necessary information, your credit card interest calculator will generate some figures. Firstly, it will tell you how long it will take to repay your debt. This is based on the minimum amount you can repay. For instance, it may be one year and ten months. In addition to this, it will also state how much interest you will pay, should you stick to that schedule.

Based on these figures, you can then get a clear idea of how you may repay your credit card debt and how long it will take. However, don’t be afraid to modify the terms to see the potential impacts. For instance, if you enter a minimum repayment of $30 initially, change it to $40 to see how that may affect your repayment schedule. While it may not seem like much, it could lead to savings on your interest or help you pay off your debt faster.

Ultimately, though, keep in mind that any figures provided will usually be estimates. In other words, use these calculators and other loan calculators as a guide. Your actual costs may vary based on a range of factors (e.g. additional fees and charges).

How is interest charged on credit cards?

Credit card interest is downright confusing at times. Luckily, Monzi’s here to help and provide you with a quick explanation of how your provider will apply credit card interest.

Firstly, it’s important to note that interest will only be applied if you have not paid off your full closing balance by your monthly due date. From there, providers typically calculate interest daily based on your outstanding balance. This will then be charged as a single, monthly interest payment on your statement. However, remember that your interest rate will be listed as an annual percentage.

Finally, it’s worthing noting that as providers apply interest daily, there is never a bad time to pay off your balance. In other words, you don’t have to wait until you make your monthly payment. You are free to make a payment any time you have a little bit of cash at your disposal. That way, you may avoid additional interest.

What is an interest-free period?

All credit cards come with an interest-free period. In short, it is the timeframe over which you will not pay interest on new purchases. As a guide, this period may range from 30 to 55 days or longer, depending on your credit card.

If you can pay off your full closing balance each month, then the interest-free period will continue to apply. However, if you have an outstanding balance once the period elapses, then you will be charged interest on the purchase that you made.

As a result, an interest-free period provides an incentive for you to pay off your balance each month. However, due to budget constraints and other expenses, it’s understandable if this is not always possible. At the very least, it may be best to aim to make the minimum monthly payment as well as anything else you can afford. For more information on this, check out our article on no interest credit cards.

Credit card interest calculator monthly payment

While we touched on it briefly earlier, if you’re looking to use a credit card interest calculator, then it’s important to understand the concept of the minimum payment.

In short, this is the amount that you must pay to your provider each month towards your outstanding balance, as part of your credit card agreement. If you do not, then you will be charged a fee. Moreover, any money that you still owe will incur interest. As a result, making only the minimum payment may not be the most efficient way to pay off your balance.

What happens if I don’t make the minimum monthly payment?

If you have a credit card, then it’s crucial to make the minimum monthly payment. If you fail to do so, then you may be charged a late payment fee. While this may not seem like the end of the world, fees can add up over time. Moreover, they can be easily avoided by simply making the minimum payment.

In addition to this, your current outstanding debt will also continue to increase as interest accumulates. Interest is charged on what you owe. Therefore, if you do not make a payment, then your outstanding balance will be higher, meaning it will incur more interest.

Finally, missed or late payments may be listed on your credit report and may, ultimately, have a detrimental impact on your credit score. If your credit score drops, then you may find it difficult to access loans and other forms of credit in the future.

Given this, if you have a credit card, then you must budget accordingly. While other expenses may seem to be more pressing, ensure you put away a little cash each month to cover your minimum payment amount.

How is the minimum monthly payment determined?

Credit card providers vary in how your minimum monthly payment is determined. As a result, providing an exact formula is not possible. That said, in most cases, providers will follow similar procedures.

Firstly, providers may apply your minimum payment as a fixed percentage of your outstanding balance. As a guide, this is often somewhere around 2%. So, if you owe $2,000, your minimum payment would be $40. Obviously, though, this amount would change as your balance changes.

However, if you owe only a small amount, then your minimum payment may be set at a floor. For instance, it may be $25. Therefore, if you have $50 outstanding, rather than your payment being charged as a percentage of what you owe, it may just be $25.

Ultimately, though, your payment will depend on what you owe. If you owe a lot, then you will likely need to pay a fixed percentage. If you owe only a little, then there your provider may apply a standard fee.

Credit card interest calculator: how do I know what the minimum payment is?

If you are unsure of what your minimum payment is, then it’s relatively easy to find. Firstly, it should be listed in your credit card contract. However, if you are unable to locate it there, then you can contact your provider and their customer service team should be able to outline the information you need.

If at any point you find that you are struggling to make your minimum payment, then you may need to reflect on your current spending habits. With this, develop a budget to determine exactly where your money is going. By reducing your credit card spending and cutting other costs, you may be able to access more funds that you can put towards paying off your outstanding balance.

Can you make more than the minimum monthly payment?

Of course you can!

The minimum payment is just that, a minimum. As a result, if your budget allows, then it’s never a bad idea to repay more than just the minimum. By doing so, you can reduce your debt faster. Moreover, it will decrease your outstanding balance, meaning that you won’t have to pay as much interest either.

That said, if you can only cover the minimum amount, then that’s OK too. You just may find that it will take a long time to repay your current outstanding balance. So, if you have a little extra cash available at the end of the month, then you may put it towards your payment.

Finally, remember that if you can pay off your entire outstanding balance each month before the due date, then you may avoid paying any interest on purchases. Surely that’s an incentive to pay off your credit debt ASAP.

What’s a good interest rate on a credit card?

Unfortunately, Monzi cannot say with certainty. Not all cards are made equal. In other words, interest rates will vary. As a result, it’s up to you to determine what a good interest rate may be on the best credit card for your circumstances.

As a guide, common types of credit cards include:

  • Low interest credit cards
  • Balance transfer credit cards
  • Student credit cards
  • No annual fee credit cards
  • Credit cards with rewards
  • Platinum or gold credit cards

Do your research to determine which option is right for you. Keep in mind that the various terms and conditions, including the interest rates and fees that apply, may vary across each type of card. Moreover, make use of comparison websites or other such tools which allow you to compare options side-by-side to find a great deal for your situation.

Credit card interest calculator with numbers on a blue notebook

How do I find the best credit card interest rates?

If you’re not yet at the stage where you need a credit card interest calculator but are instead looking to find the best credit card, then the most important thing to do is compare your options. If you simply select the first offer you find, then you are totally blind to the other products on the market. In other words, you may be missing out on great offers, lower rates or more favourable terms.

So, when you’re looking to compare credit cards, ensure you consider the following:

  • Interest rate on purchases: where possible, a lower rate is usually better. After all, that way, you can reduce your costs.
  • Introductory periods: providers may offer no or low interest on purchase for a period after you open an account.
  • Interest-free days: providers may not charge interest for a number of days after you make a purchase. Usually, more days is better.
  • Fees: credit cards may come with an annual or monthly fee.
  • Minimum payment: the amount you must pay, at a minimum, each month on your outstanding balance.
  • Bonus offers and deals: does your card reward your spending? Some cards allow you to accumulate points which you can then spend on a variety of products and experiences. You may even get cashback.

For further details, the free Moneysmart website offers a guide to choosing a credit card. Check it out today.

Why is credit card interest so high?

Compared to home loans, car loans and other loan products, credit cards tend to have much higher interest rates. The question you may be asking is “why is this the case?”

In short, it comes down to the fact that credit cards are a form of unsecured finance. In other words, when you apply for a credit card, you are approved to borrow money up to a certain credit limit. However, any money you borrow is not guaranteed by one of your assets like it would be with a secured loan or a standard car loan.

Given this, credit cards pose a risk to providers and banks. After all, they simply have to rely on you to repay the money you borrow. As a result, they may apply high-interest rates to compensate for the risk they face. That’s why, where possible, it’s important to pay off your closing balance each month.

What are my options if I’m struggling with credit card debt?

Dealing with debt can be one of the most stressful experiences for any individual. Luckily, if you do find yourself in this situation, then there are options available. To assist you, we’ve assembled a quick list below of potential strategies to assist you with managing debt. Do your research to determine if they may be an option for you.

Credit card balance transfer

If you are battling credit card debt, then a common strategy is to complete a credit card balance transfer. With this, the idea is to take advantage of introductory 0% or low-rate offers when you transfer your debt onto a new credit card. These introductory periods may last for anywhere from six months to thirty months.

By taking advantage of a 0% introductory rate, you can minimise your interest payments. That way, you may be able to take steps to repay your current debt, without substantial additional costs. However, once the introductory period elapses, any remaining debt you have will incur the standard rate applied to your card. As a result, it’s important to make use of the introductory rates while you can and pay off as much debt as possible.

Credit card debt consolidation

An alternative to a balance transfer may be to apply for a debt consolidation loan. With this, you will borrow the amount required to pay off your credit card debt, including any fees. As a result, you’re left with just one principal and interest loan to manage over a fixed period.

While that sounds great, keep in mind that credit card debt consolidation is not perfect. In short, if consolidating your debt would not reduce your costs, then it may not be worth it. In any case, before applying, consider any costs as well as the pros and cons to determine if it’s right for you.

With Monzi, you may apply for debt consolidation loans from $300 to $10,000. From there, we’ll do our best to connect you with a lender who may assist you.

Credit card interest calculator: consult a professional

Last but not least, if you are struggling with credit card debt, then you should reach out to a debt management specialist. Just because it is your debt, doesn’t mean that you must go it alone. There are qualified professionals out there who may assess your financial situation to help you develop a path going forward.

In Australia, you can contact the National Debt Helpline on 1800 007 007 during business hours. From there, they may connect you with a free financial counsellor.

Ultimately, if you are struggling with debt of any kind, don’t be afraid to seek assistance. It will almost certainly be more effective than trying to solve the problems yourself.

Does Monzi offer a credit card interest calculator?


In short, this breakdown provides you with an informative guide to using a credit card interest calculator. Unfortunately, though, we cannot offer this product.

What we can offer though, is an easy and convenient lender-finder service. With this, if you need cash today from $300 to $10,000, then we can potentially match you with one of the many credit providers within our lender-network. As a result, you might get your money fast and then repay it via a series of even repayments over terms ranging from 12 to 24 months.

Ultimately, Monzi is the bridge connecting Aussies with lenders. Rather than spending all day combing through search results, just apply with Monzi. If you apply during business hours, we may match you with a lender in just 60 minutes. Let’s go.

What’s better: a personal loan or credit card?

In short, it’s impossible to say. While both may be appropriate options in certain circumstances, we are unable to recommend either option without knowing what your needs, goals and objectives are. As a result, it will be up to you to determine which is right for you.

To get you started, personal loans may be more appropriate if you are looking to cover a major, one-off expense. In short, you can borrow cash today and divide the costs over a fixed period. In other words, personal loans may assist you to manage a single, significant purchase or expense in the short-run by spreading the costs over the long-term.

On the other hand, credit cards may be ideal if you’re looking to make on-going purchases. In other words, it can help you manage short-term cash flow issues which you will then need to pay off each month. However, with a credit card, you shouldn’t spend more than you can repay each month. Otherwise, you may face significant interest expenses. As a result, they are best suited to those people able to manage their budget effectively.

At the end of the day, you’ll have to decide which is best. If you opt for a personal loan, then why not apply with Monzi? We may be able to connect you with lenders offering quick cash loans from $300 to $10,000.

Should I apply for a debt consolidation loan?

At Monzi, we may pair you with lenders offering consolidation loans from $300 to $10,000. So, if you’re looking to simplify your debt, then this may be one option worth considering. After all, rather than juggling multiple cards or loans, you’re left with one, fixed-term loan with even repayments and a clear end date.

That said, before applying for a debt consolidation loan, ensure that it is right for you. In other words, confirm that it will not only simplify your repayments but also lower your costs too. If you would pay more after consolidating your debt, then it’s likely not an appropriate option.

If you are unsure, don’t be afraid to reach out to a qualified debt advisor. They may be able to examine your current situation to help you develop a plan of attack. Alternatively, using a credit card interest calculator may help you assess your current costs and how long it may take to repay what you owe.

How do I apply?

If you’ve got a major expense upcoming but don’t quite have the cash to cover it, then an instant loan may be one way to ease the burden. In these situations, you can turn to Monzi. When you’re ready to apply, just follow these easy steps:

  1. Select your loan amount and repayment term using the loan slider.
  2. Complete your online application by providing the necessary personal and financial details. Then, hit ‘submit.’
  3. Monzi will take it from here. Once we receive your application, we do our best to match you with an available lender from our network.
  4. You’ll receive an outcome. If we match you with a credit provider, they will be in touch to outline the next steps.

Note that approval is not certain. Moreover, Monzi’s network of lenders can only offer personal loans. If you would like to apply for a credit card, then you may need to do your own research to determine your options.

Any questions?

At Monzi, we’re expert lender-finders. Unfortunately, though, we won’t be able to answer any questions regarding your credit cards or the interest you may pay. Instead, you’ll need to direct those questions to the relevant credit card companies.

However, if you’ve got questions about our organisation or service, then we’re always happy to hear from you. Contact us at with any queries or concerns you may have. We’ll do our best to get back to you with a response ASAP.

Credit card interest calculators and Monzi

While we are unable to provide anything beyond an informative guide to using a credit card interest calculator, Monzi’s lender-finder service is there if you need cash today.

Apply from $300 to $10,000 now using Monzi’s loan slider. Get a loan today and repay the money you borrow over terms ranging from 12 to 24 months. Best of all, with easy applications, fast outcomes and a 100% online service, it may be the easiest thing you’ve done in a while. Apply now.

Have you enjoyed our information breakdown and want to hear more from Monzi? You can follow us on Facebook, Instagram, Twitter and Pinterest. Alternatively, you can learn more about virtual credit cards or a range of other great stuff.

Factor In Costs

You won't use a penny to apply for our lender-finding service, but here's some costs you could expect from a lender

Loan amount

$300 - $2,000


12 months (minimum)

12 months (maximum)


20% upfront establishment fee

+ 4% monthly fee


Representative example based on a loan of $1000 over 6 months a borrower can expect to pay a total of $1440.

Disclaimer: Under the current legislation, all Small Amount Credit Contract loan providers don’t charge an annual interest rate. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The comparison rate on loans between $300 and $2000 could be up to 199.43%. The minimum loan term is 16 days and maximum loan term is 12 months. Representative example based on a loan of $1000 over 6 months a borrower can expect to pay a total of $1440. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan.

Loan amount

$2,100 - $4,600


13 months (minimum)

24 months (maximum)


47.8% Annual Percentage Rate (APR)

65.85% Comparison Rate p.a.


Representative example based on a loan of $2500 over 24 months a borrower can expect to pay a total of $4,556.88.

The maximum interest rate for a Medium Amount Credit Contract is 47.8%. Comparison Rate 65.85% p.a. The maximum loan term is 24 months. Representative example based on a loan of $2500 over 24 months a borrower can expect to pay a total of $4,556.88. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Credit criteria and terms and conditions apply.

Loan amount

$5,000 - $15,000


13 months (minimum)

24 months (maximum)


17% Annual Percentage Rate (APR)

36% Comparison Rate p.a.


Representative example based on a loan of $10,000 over 36 months a borrower can expect to pay a total of $16,489.

The starting interest rate for a Personal Loan is 17%. Comparison Rate 36% p.a. The maximum loan term is 24 months. Representative example based on a loan of $10,000 over 36 months a borrower can expect to pay a total of $16,489. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Credit criteria and terms and conditions apply.