Will paying extra reduce total interest paid?

Yes. Every pound paid above the minimum goes directly toward reducing the principal balance, stopping future interest from compounding on that amount.

Credit card payoff calculator

See how long it takes to pay off your credit card balance. Calculate your exact debt-free date and test how extra monthly payments reduce compound interest.

Quick Debt Payoff Calculator

Enter your total balances and see how much time and interest you save by adding an extra monthly payment.

Total Owed

Average APR

Total Min. Payment

Extra Monthly Cash

You save £5,224 and pay off 3 yrs 5 mos earlier!

By adding £150/mo to your £275 minimum payment.

Minimum Payments Only (£275/mo)

Payoff Date

May 2033 (6 yrs 9 mos)

Total Interest Paid

£9,646

Accelerated (£425/mo)

Accelerated Payoff Date

Dec 2029 (3 yrs 4 mos)

Total Interest Paid

£4,422

FCA-aware mathematical calculator

How Credit Card Interest Compounds

Credit card interest compounds daily based on your Annual Percentage Rate (APR). Monthly interest charges are calculated on your average daily balance. Paying only the minimum balance keeps principal balances high, allowing daily interest compounding to continue.

The Cost of Paying Minimums Only

Credit card minimum payment formulas typically require 1% to 3.5% of the total balance plus monthly interest. As your balance decreases, the required minimum payment also drops, extending the repayment timeline by years or decades.

Managing Multiple Credit Cards

If you carry balances across multiple credit cards or store cards, use our itemized calculator to compare Snowball and Avalanche repayment order.

Frequently Asked Questions

Most UK credit card issuers calculate minimum payments as a percentage (e.g. 1% to 2.5%) of the main balance plus interest and fees, or a flat minimum (e.g. £5), whichever is higher.

Explore Related Payoff Tools & Guides

Itemized Debt Payoff Calculator Loan Payoff Calculator Debt-Free Date Calculator Minimum Payment Trap Guide