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Business credit card calculator
Work out how long a business credit card balance takes to clear, what it costs in interest, and what you would need to pay to clear it by a date you choose.
Month by month
How each payment splits between interest and the balance. Long schedules show the first 120 months.
| Month | Payment | Interest | Balance reduced by | Balance |
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Illustrative only, not an offer. These figures are arithmetic on the numbers you enter. A lender sets your actual rate, fees and terms on application, and its own quote is the only figure that binds. Nothing you type into this calculator leaves your browser.
How the calculation works
Each month the interest is the balance multiplied by the monthly rate, and your payment is applied to that interest first and then to the balance. With a fixed payment M, a balance P and a monthly rate r, the number of months is −ln(1 − P × r ÷ M) ÷ ln(1 + r), rounded up, and the calculator shows the schedule month by month. To clear a balance in n months the payment is P × r ÷ (1 − (1 + r)−n). As a check, a £2,000 balance at 22.91% a year (22.91 divided by 12, which is the 1.909% a month Barclaycard publishes for its Select Cashback card) with £100 paid each month clears in 26 months, 25 payments of £100 and a last payment of £43.62, with £543.62 of interest.
The minimum payment mode
Issuers set their own minimum payment formulas and they differ. Barclaycard’s Select Cashback page says the minimum is £5, or an amount equal to interest, fees and charges plus 1% of the remaining balance. HSBC’s Commercial Card page says interest, fees and charges plus 1.5% of the remaining balance, with a £5 minimum. The Co-operative Bank says the highest of 2% of the balance, £5, or interest and charges plus 1%. The minimum mode here uses the simplest shape of those: each month you pay the larger of your chosen floor and that month’s interest plus your chosen percentage of the balance. It ignores fees and assumes no new spending, so it is a teaching illustration of how slowly a minimum payment clears a balance, not any card’s actual schedule. Check your own card’s summary box for its formula.
Annual rate or APR?
Cards that state a monthly rate, such as Barclaycard’s 1.909%, are matched by the default, which divides the yearly rate by twelve. The true APR setting treats your rate as a compounded yearly rate, which gives a slightly lower monthly rate. Use the purchase rate from the card’s page for a balance you carry, rather than the representative APR, which includes fees. See our guide to business credit card APR for why the two differ.
What it leaves out
New purchases, fees, interest-free periods, a rate that changes with the Bank of England base rate, and any promotional rate. If you pay the full balance by the due date on purchases, many issuers charge no interest, and this calculator is not for that case. For the cards and their published rates, see the business credit card comparison.
Frequently asked questions
Is this what my card will charge?
No. It is arithmetic on the figures you enter. Your issuer sets your rate and its own minimum payment formula, and its statement is the only figure that binds.
Which rate should I enter?
The yearly purchase rate from the card's page or your statement. The representative APR includes fees and an assumed £1,200 limit, so it is not the rate on your balance.
Does it include the annual fee or cash withdrawal fees?
No. It calculates interest only. Add any fee that is charged to the balance to the balance you enter.
Is my information stored?
No. The calculator runs entirely in your browser; nothing is sent to us or anyone else.