The first piece of any card payment goes to interest. On a $10,000 balance, a month of interest is $125.00 at a 15% APR and $249.92 at 29.99%. If your payment is close to that number, the balance barely moves.
One month of interest
| Balance | 15% APR | 20% APR | 25% APR | 29.99% APR |
|---|---|---|---|---|
| $3,000 | $37.50 | $50.00 | $62.50 | $74.98 |
| $6,000 | $75.00 | $100.00 | $125.00 | $149.95 |
| $10,000 | $125.00 | $166.67 | $208.33 | $249.92 |
| $15,000 | $187.50 | $250.00 | $312.50 | $374.88 |
To find your own number, multiply the balance by APR and divide by 12. Your payment minus that number is what reduces the balance. If it is zero or negative, the balance will not fall.
What we assumed
- Interest = balance × APR ÷ 12 (approximation of daily accrual).
Related calculators: Credit Card Payoff Calculator, Personal Loan Calculator.
Questions people ask
Is interest charged daily?
Most issuers calculate it daily on the average balance. A monthly approximation is close enough for planning.
Estimates for general education, not financial, tax or legal advice. Real results depend on your lender, employer, tax situation and location. See the disclaimer.