Credit Card Payoff Calculator
Enter your balance, card APR and minimum payment method to see your total interest cost and how long it will take to clear the debt. Add an optional extra monthly payment to see how much sooner and cheaper you could be done.
Pay your full statement balance by the due date and you’ll never pay interest.
How this calculator works
Credit cards in Sri Lanka operate under a regulatory framework set by the Central Bank of Sri Lanka's Credit Card Guidelines, but the specific terms, your grace period length, minimum payment percentage and interest rate, are set individually by each card issuer. If you pay your full statement balance by the due date each month, most banks apply an interest-free grace period, so you pay zero interest. The moment you pay less than the full balance, that grace period is voided and interest begins accruing. Your minimum payment also isn’t fixed: banks typically calculate it as a percentage of your current balance (a common example is 5% of the outstanding balance), so as your balance falls, so does your required payment. This is exactly why minimum payments alone can take years to clear a balance.
Good to know
This calculator assumes interest begins accruing on your full balance from the point you make a partial payment, since exact interest depends on individual transaction dates which this tool doesn’t have access to. Minimum payment percentages, grace period length, and exact terms vary by bank and card type, so always check your card’s terms and conditions or your monthly statement for your exact figures. This tool is for planning purposes only and is not financial advice.
Sources
Worked example
Take a Rs. 150,000 balance on a card with a Rs. 300,000 limit (50% utilisation) at 36% APR, with a minimum payment of 5% of the balance or Rs. 1,000, whichever is higher. Here's what paying only the minimum costs compared with adding Rs. 10,000 a month:
Rs. 150,000 balance, 36% APR, 5% minimum payment
| Scenario | First payment | Payoff time | Total interest |
|---|---|---|---|
| Minimum payments only | Rs. 7,500 | 131 months (~11 years) | Rs. 205,999 |
| + Rs. 10,000/month extra | Rs. 17,500 | 13 months | Rs. 30,203 |
Paying only the minimum on this balance takes almost 11 years and costs more in interest (Rs. 205,999) than the original balance itself. Adding Rs. 10,000 a month clears it in just over a year and saves Rs. 175,796.
Frequently asked questions
How exactly is my minimum payment calculated?
Most Sri Lankan card issuers calculate it as a percentage of your outstanding balance (a common example is 5%), subject to a fixed rupee floor, whichever is higher. Because the payment is based on your current balance, it shrinks every month as you pay it down, so it never fully amortises the debt the way a loan instalment does.
What actually happens if I only ever pay the minimum?
In the example above, a Rs. 150,000 balance at 36% APR takes about 131 months, nearly 11 years, to clear on minimum payments alone, and costs over Rs. 205,000 in interest, more than the original balance. Because the minimum keeps shrinking as the balance falls, the payoff drags out for years even though each individual payment looks manageable.
Do I pay any interest if I clear my statement balance in full every month?
If you pay the full balance by the due date, most banks apply an interest-free grace period under the Central Bank's Credit Card Guidelines, so you pay zero interest that cycle. The moment you carry any balance past the due date, that grace period is voided and interest begins accruing, typically on the full balance, until you clear it completely.
Does my balance-to-limit ratio matter beyond the interest I'm paying?
Yes. In the example above, a Rs. 150,000 balance against a Rs. 300,000 limit is 50% utilisation. Beyond the direct interest cost, running a high balance relative to your limit is generally viewed by lenders as a sign of financial strain and can affect your standing when you apply for new credit. Keeping utilisation low, rather than relying on limit increases, works in your favour beyond the interest savings alone.
Want the full breakdown? Read Why minimum payments are a trap: what your credit card doesn't tell you →