Credit Card Interest Calculator
Calculate your credit card interest, payoff time, and total cost. Plan your debt repayment strategy with our free UK credit card interest calculator.
Credit Card Repayment Details
Enter your current balance, interest rate, and payment strategy to see how quickly you can become debt-free
The total amount you currently owe on your credit card.
Your card’s representative APR. Check your latest statement for the exact rate.
How much you plan to pay off each month. Must be higher than the monthly interest.
Average amount of new spending added to the card each month. Enter 0 to stop using the card.
Repayment Projection
See how your payments affect your debt and interest costs
Enter your credit card details and payment strategy above, then click Calculate Payoff to see your projection.
UK Credit Card Cost Benchmarks
Understanding standard credit card terms and fees helps you manage your debt effectively and avoid unnecessary charges.
| Term / Fee | Typical Cost | Context / Details |
|---|---|---|
| Standard Purchase APR | 18% – 25% | The typical interest rate for new purchases on a UK credit card. |
| 0% Introductory APR | 6 – 29 Months | Promotional period for purchases or balance transfers. |
| Minimum Payment | 1% + Interest or £5 | The lowest amount you must pay to avoid late fees. |
| Late Payment Fee | £12 | Typical fee charged if you miss the minimum payment deadline. |
| Over Limit Fee | £12 | Charged if you exceed your credit limit (requires opt-in). |
| Cash Advance Fee | 3% – 5% | Fee for withdrawing cash, plus immediate interest accrual. |
Credit Card Interest FAQ
Everything you need to know about UK credit card interest rates, minimum payments, and debt repayment strategies.
UK credit card interest is typically calculated daily based on your Annual Percentage Rate (APR), but it is added to your balance monthly. The daily periodic rate is your APR divided by 365. This daily rate is multiplied by your outstanding balance each day, and the total interest for the month is added to your statement. For simplicity, most repayment calculators use a standard monthly rate (APR ÷ 12).
The typical APR for a standard UK credit card currently ranges from 18% to 25%. However, many cards offer 0% APR on purchases or balance transfers for an introductory period (usually 6 to 29 months). After the promotional period ends, the rate reverts to the card’s standard purchase APR, which is often around 20% to 30%.
Paying only the minimum amount (usually 1% of the balance plus monthly interest, or a fixed amount like £5) can take decades to clear a balance and result in paying multiples of the original amount in interest. For example, a £2,000 balance at 20% APR with a 1% + interest minimum payment can take over 20 years to pay off, costing over £2,500 in interest alone.
Yes, absolutely. Because credit card interest is calculated on your outstanding daily balance, paying more than the minimum reduces the principal faster. This means less interest accrues in subsequent months, saving you a significant amount of money and helping you clear the debt much sooner.
If you only pay the minimum, you will avoid late fees and protect your credit score from missed payment marks. However, the majority of your payment will go towards covering the monthly interest rather than reducing the principal balance. This leads to long-term debt and significantly higher overall costs. It is highly recommended to pay as much above the minimum as your budget allows.