See how long a card takes to clear and the interest it costs.
Time to clear
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Total interest
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Total repaid
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Your breakdown
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Amount (NGN)
Worked example
Take an N500,000 card balance at a monthly interest rate of 3%, which is the way Nigerian cards quote it, paying N50,000 a month. In the first month interest of N15,000 is added, then the N50,000 payment is deducted, so the balance falls to N465,000. Each month the interest is smaller because the balance is smaller, so more of the fixed payment chips away at the principal. The card clears in about 13 months, just over a year, and you pay total interest of about N103,377, making the total repaid about N603,377. The single biggest lever is the payment: a payment that only just exceeds the monthly interest charge can take years, while a larger payment clears the card in a fraction of the time and at far less interest.
How it is calculated
The calculator runs the card month by month. Each month it adds interest at the monthly rate to the balance, then subtracts your fixed payment, and counts the months until the balance reaches zero. It totals the interest along the way. Note that Nigerian cards quote a monthly rate, not an annual one, so a 3% figure means 3% each month, which compounds to far more over a year. There is one important guard: if your payment is smaller than or equal to the first month's interest charge, the balance never falls and the card is flagged as not payable, because interest is being added faster than you are paying it down. The lesson is that on a high-rate card a minimum payment barely dents the balance, so paying as much above the minimum as you can afford is what actually clears the debt.
Frequently asked questions
How long will it take to pay off my card?
It depends on the balance, the monthly interest rate and how much you pay each month. Interest is added to the balance each month, then your payment is deducted, so a larger payment clears the card faster and costs less interest. If your payment is smaller than the monthly interest charge, the balance never falls. This calculator counts the months and totals the interest you pay.
Why do Nigerian credit cards use a monthly rate instead of an annual rate?
Nigerian card issuers are required by the Central Bank of Nigeria to disclose interest on a monthly basis rather than quoting an annual percentage rate. A 3% monthly rate compounds to roughly 42.6% annually, which is far higher than an annual rate headline might suggest. Always convert the monthly rate to an annual figure before comparing cards or deciding whether to borrow.
What happens if my payment is less than the monthly interest charge?
If your fixed payment is equal to or smaller than the interest added in the first month, the outstanding balance grows every month instead of shrinking. You will never clear the card by paying that amount. The minimum payment on most Nigerian cards is set just above the monthly interest charge, so paying only the minimum can extend repayment for many years and multiply the total cost several times over.
How can I clear my card faster given high Nigerian interest rates?
The fastest path is to increase your monthly payment as much as possible, because every extra naira reduces the principal that attracts interest the following month. Consolidating the balance onto a lower-rate product, such as a personal loan from your bank, can also reduce the total interest paid. Avoid using the card for new purchases while paying it down, because fresh charges restart the interest calculation on a larger balance.