Credit Card Revolving Debt Payoff Calculator
Enter your outstanding balance, the monthly interest rate and how much you can pay each month.
Credit card revolving credit is among the most expensive debt around, and it compounds: interest on the balance, including interest from previous months. If your monthly payment doesn't cover even that month's interest, the debt never shrinks — it only grows. This calculator shows exactly which case you're in.
Check your credit card statement — usually between 10% and 20% per month. As a % per month.
Simulation with a fixed interest rate and constant monthly payment — the real revolving rate can vary month to month depending on the issuing bank's policy. Always check your latest statement for the exact rate.
Frequently asked questions
Why is credit card revolving credit so expensive?
Because it charges high compound interest on the full unpaid statement balance, day after day — it's treated as very short-term, unsecured credit, which is why it carries one of the highest rates in the Brazilian market.
Why doesn't my debt go down even though I pay every month?
If the amount you pay isn't bigger than that month's interest charge, the difference doesn't disappear: your payment only covers part of the interest, and the rest (plus the old balance) keeps earning interest the following month. It's the 'snowball' effect.
What should I do if I'm in this situation?
Looking for a credit line with a much lower rate to pay off the revolving balance (a personal loan, payroll loan, or debt portability) is usually cheaper than continuing to pay only part of the statement. A bank or credit union can walk you through the options available.
Does this calculator handle interest-on-interest correctly?
Yes — the calculation applies interest to the full balance, including unpaid interest from previous months, the same way a credit card statement does.