Credit Card Interest & Payoff Calculator

How Credit Card Interest Works

Credit cards charge compound interest daily on your outstanding balance. With a 22% APR, the daily rate is 22% ÷ 365 = 0.0603%. On a $5,000 balance, that's $3.01 in interest every day — $90 per month just in interest. If your minimum payment is $100, only $10 goes toward actually reducing your debt.

Paying only the minimum on a $5,000 balance at 22% APR typically takes over 20 years and costs more than $7,000 in interest — more than the original debt. Doubling or tripling your minimum payment dramatically cuts both the time and interest cost.