About this calculator
This calculator tells you exactly how long it will take to clear a credit card balance at a given monthly payment, and how much interest you'll pay in the process. Enter the outstanding balance, the annual interest rate on the card and the monthly amount you can afford to pay.
Credit card interest is charged monthly on the outstanding balance. If your monthly payment doesn't exceed the interest charged, the balance never reduces and the debt effectively becomes permanent. That's why paying only the minimum (typically 3–5%) on a South African credit card at 18–22% can leave you paying for years on relatively small balances.
The best strategy is almost always to pay as much above the minimum as you can afford, and to stop new spending on the card until it's cleared. If the interest rate is very high, consider consolidating to a personal loan at a lower rate — most personal loans in South Africa price at 16–22% versus 18–22% for cards, and the fixed schedule imposes discipline. Use our Loan Calculator to compare.
How to use it
- 1Enter the balance. The current outstanding balance on the card.
- 2Enter the interest rate. The annual rate charged on the card.
- 3Enter your monthly payment. The amount you plan to pay each month.
- 4Read the payoff period. The number of months to clear the debt and total interest.