Credit Card Payoff & Minimum Repayments
See how long it could take to pay off your credit card. Compare minimum payments, a fixed monthly payment and a 0% balance transfer.
How this tool works
Reviewed 6 September 2026. ASIC Credit Card Minimum Repayment Warning standards and Australian Banking Code provisions.
Calculation outline
- Models statutory minimum repayments based on the higher of balance percentage (2.0% or 2.5%) or floor amount ($20 or $25), plus fees and interest.
- Simulates the multi-decade "Minimum Repayments" month-by-month to demonstrate how paying only the minimum stretches debt over 15 to 30+ years.
- Calculates the fixed monthly repayment required to eliminate the balance within a target timeframe (e.g. 2 years), quantifying years saved and interest avoided.
- Simulates 0% p.a. promotional balance transfer offers with upfront BT fees, checking whether debt is cleared before the expensive revert rate takes effect.
Worked example
Example: a $6,000 balance at 20.99% p.a. with a 2.0% minimum payment rule can take over 30 years to clear and cost over $12,000 in interest. Switching to a fixed payment of ~$308/month clears the balance in 2 years, saving ~$10,000 in interest and 28+ years of debt.
Limits
- Assumes no further transactions or purchases are made on the card while paying down the balance.
- Balance transfer simulations assume the cardholder meets all monthly minimum repayment conditions required to preserve the 0% promotional rate.
Sources
- ASIC Moneysmart credit card calculator
- National Consumer Credit Protection Act 2009 - Credit card statements
This tool provides general information and illustrative estimates only. It does not consider your objectives, financial situation or needs and is not personal financial, tax or legal advice.