How credit-card interest works
Credit-card interest is charged on balances according to the terms and calculation method used by the issuer. The interaction between balance, rate and payment determines how quickly a balance falls.
Why minimum payments can take time
A payment needs to cover the interest being charged and reduce principal for the balance to decline. A larger payment generally reduces the balance faster in a simple payoff model.
How the payoff calculator works
ToolZeroo's estimate applies the annual rate as a monthly rate and repeatedly subtracts the payment until the modeled balance reaches zero. It does not add new purchases or issuer-specific fees.
Why your statement may differ
Interest can be affected by payment dates, new purchases, fees and issuer-specific conventions. The calculator is therefore best used as a planning model alongside your actual statement.
ImportantThis is an educational explanation, not a debt-management recommendation or personalised financial advice.
Related calculators
Browse ToolZeroo Finance calculators →Information on this page is general and educational. Check the actual terms, rates and rules that apply to you.