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    This Is How Much Your Credit Card Is Really Costing You

    Updated

    Most people underestimate how fast credit card interest compounds because it's recalculated on your balance every single month. Enter your balance, APR and monthly payment to see exactly how long payoff will take, how much interest you'll pay in total, and how much of your very first payment actually reduces what you owe.

    Time to pay off
    2y 2m
    Total interest
    $514
    Total paid
    $2,514
    You'll pay $514 in interest — 26% on top of your original $2,000 balance.
    How this was calculated
    Monthly interest rate
    22.00% / 12 = 1.833%
    Month 1 interest charge
    $2,000 x 1.833% = $37
    Month 1 principal reduction
    $100 - $37 = $63
    Repeated monthly until balance = $0
    2y 2m total
    Last reviewed: July 9, 2026Last updated: July 9, 2026

    How this calculator works, assumptions, and sources

    Last reviewed July 9, 2026. Spotted an error? Report it via our corrections policy.