Credit card interest & payoff calculator

UAE banks quote credit-card interest as a monthly rate — commonly around 3% to 3.5% per month on retail purchases. Interest is charged on the outstanding balance each month, so a 3.25% monthly rate works out to roughly 39% per year.

The minimum payment is usually the greater of a fixed floor (often AED 100) or a small percentage of your balance (commonly 5%). Because most of an early minimum payment goes to interest, the balance barely moves — stretching repayment over years and multiplying the total interest.

It's the smallest amount you must pay each month to keep the account in good standing — typically the greater of around 5% of the outstanding balance or AED 100. Paying only this keeps you out of arrears but is the most expensive way to carry a balance.

Pay a fixed amount well above the minimum each month, avoid adding new purchases to the balance, and consider a balance transfer to a 0% promo offer if you have a large balance. Use the fixed-payment option above to see the impact.

Because interest compounds, you can't just multiply by 12. The effective annual rate is (1 + monthly rate)¹² − 1. For example, 3.25% per month is (1.0325)¹² − 1 ≈ 46.8% per year effective; banks often quote the simpler 3.25 × 12 = 39% nominal figure. Either way, it's expensive debt.

Yes. If you pay your statement balance in full by the due date, you typically pay no interest at all — most UAE cards give an interest-free (grace) period of around 20–55 days on purchases. Interest only kicks in once you carry a balance forward; from that point new purchases usually start accruing interest immediately.

Yes, and they're more expensive than purchases. Cash advances usually carry a separate fee (often around 3% of the amount, with a minimum) and start accruing interest from day one — there's no grace period. Avoid using a credit card for cash if you can.

You'll typically be charged a late-payment fee plus interest on the outstanding balance, and you may lose the interest-free period on new purchases until the account is back in full. Repeated late payments can also be reported to the Al Etihad Credit Bureau (AECB) and hurt your credit score.

High balances relative to your limit (high utilisation) and missed payments are recorded by the AECB and can lower your score, affecting future loan and card approvals. Paying down the balance and keeping utilisation low improves your profile over time.