UAE Credit Card Interest Calculator
See the interest on a UAE credit card at your monthly rate, how many years the minimum payment takes to clear the balance and what it costs, a fixed-payment plan and whether a balance transfer saves money.
| Annual rate (APR) | — |
|---|---|
| Minimum payment this month | — |
| Paying only the minimum | — |
| Paying a fixed amount | — |
| To clear in 12 months | — |
| Balance transfer | — |
| Effect on your debt-burden ratio | — |
In short
UAE credit cards typically charge 2.99%–3.59% a month (36–43% a year) on balances not paid in full; paying only the 5% minimum on AED 20,000 at 3.25% takes about 12 years 8 months and costs around AED 31,900 of interest, whereas clearing it in 12 months costs AED 4,470. The Central Bank caps late fees at AED 230.
Who this is for: Cardholders carrying a balance who want to see what the minimum payment really costs and whether a fixed plan, loan or balance transfer is cheaper.
How UAE credit-card interest works (and why the minimum payment is a trap)
UAE cards quote a monthly rate — typically 2.99% to 3.59% — which is 36–43% a year, far above a personal loan. Interest is charged on the full statement balance from the transaction date unless you pay 100% by the due date; paying the minimum (usually 5% of the balance, minimum AED 100) keeps the account in good standing but almost all of it is interest.
- Minimum-payment maths: on AED 20,000 at 3.25% a month, the first minimum payment of AED 1,000 includes AED 650 of interest; clearing the card this way takes well over a decade and costs more in interest than the original debt.
- Central Bank limits: late-payment fee capped at AED 230; 5% of your card limits count towards the 50% debt-burden ratio for any loan application.
- Cheaper routes: convert the balance to a 0%–6% balance-transfer card (watch the 1–2% fee and the promo end date), take a personal loan at 5–9% APR, or ask the issuer for an installment plan at 0.5–1.5% a month.
- Islamic cards: charge a monthly profit (tawarruq) instead of interest; the arithmetic in this tool is the same.
Assumptions
- Interest = balance × monthly rate; simulation applies interest then the payment each month with no new spending.
- Minimum payment = max(floor, % of balance after interest); the 12-month plan uses the amortisation formula at the nominal APR (monthly rate × 12).
- Balance transfer: balance × (1 + fee) amortised at the promo rate over the promo months, compared with the 12-month card payoff.
Worked example
Interest this month = AED 650 (39% a year nominal, 46.8% effective). Minimum payment AED 1,000, of which only AED 350 reduces the balance. Paying the minimum every month takes about 12 years 8 months and costs roughly AED 31,900 of interest — 1.6× the original debt. Paying a fixed AED 1,500 clears it in 18 months for AED 6,640 of interest; clearing it in 12 months needs AED 2,039 a month (AED 4,470 of interest). A 0% balance transfer for 12 months with a 1% fee costs AED 200 instead.
Frequently asked questions
What is the interest rate on credit cards in the UAE?
Most banks charge 2.99%–3.59% a month on purchases (about 36–43% a year) and slightly more on cash advances; some premium and Islamic cards are lower. The rate is on the card's key-facts statement.
What is the minimum payment on a UAE credit card?
Usually 5% of the outstanding balance or AED 100, whichever is higher; some banks use 2.5% plus fees and interest. Paying only the minimum keeps interest running on the whole balance.
Do I pay interest if I pay the full amount?
No — paying 100% of the statement balance by the due date keeps the interest-free period (up to 55 days) on purchases. Cash withdrawals attract interest from day one regardless.
Is there a cap on credit-card interest in the UAE?
No regulatory cap on the rate; the Central Bank caps late-payment fees (AED 230) and requires rates and fees to be disclosed, but the monthly rate itself is set by the bank.
Can I convert my card balance to a loan?
Yes — most banks offer balance-transfer cards (0%–6% for 6–12 months with a 1–2% fee) and installment plans; a personal loan at 5–9% APR is usually the cheapest way to clear a large balance.
How does my credit card limit affect a mortgage or loan?
Lenders add 5% of your total card limits to your monthly obligations for the 50% debt-burden ratio, so cancelling unused cards before applying increases what you can borrow.
Why did I pay interest after paying most of the bill?
Paying less than the full statement balance cancels the interest-free period, so interest is charged on every purchase from its transaction date, not just on the unpaid part.
Does an Islamic credit card charge interest?
It charges a monthly profit under a tawarruq or ujrah structure instead of interest; the amount is calculated on the balance in the same way, so the calculator applies.
People also ask
What is the credit card interest rate in the UAE?
Typically 2.99–3.59% a month (about 36–43% a year) on balances not cleared in full; some cards charge over 3.75%.
What is the minimum payment on a UAE credit card?
Usually 5% of the balance or AED 100, whichever is higher; paying only the minimum can take many years to clear a balance.
Are there late fees?
Capped by the Central Bank at AED 230 per missed payment.
How do I avoid credit card interest?
Pay the full statement balance by the due date — the interest-free period (up to 55 days) applies only when the previous balance was paid in full.
Is cash withdrawal charged differently?
Yes — a cash-advance fee (around 3%, minimum AED 99) and interest from the day of withdrawal with no grace period.
Does a balance transfer help?
A 0% balance transfer for 6–12 months (usually with a 1–3% fee) can cut the cost if you clear the balance in the promo period.
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