Credit Card Interest at 28% APR
What a 28% APR actually costs on a $5,000 balance — the monthly interest, how long payoff takes at common payments, and how to lower your rate.
First-month interest on $5,000
$117/mo
$5,000 × 28% ÷ 12 months
Daily interest
$4/day
Most cards compound on the average daily balance.
Payoff at 28% APR (on a $5,000 balance)
| Monthly payment | Time to pay off | Total interest |
|---|---|---|
| $100/mo | Never (too low) | — |
| $150/mo | 5.5 yrs | $4,782 |
| $200/mo | 3.2 yrs | $2,591 |
| $300/mo | 1.8 yrs | $1,406 |
| $500/mo | 1.0 yrs | $761 |
| Minimum-ish (~$167/mo) | 4.4 yrs | $3,700 |
Model your own balance at 28% APR
Months to pay off
38
Pay double the minimum to typically cut payoff time by half.
How to lower a 28% APR
- Ask for a reduction. Call your issuer — roughly 30% of cardholders who request a lower rate get a 2–8 point cut, costing nothing to try.
- Use a 0% balance transfer. Moving the balance to a 0% promotional card (typically 12–21 months) pauses interest entirely, sending every dollar to principal — for a small transfer fee.
- Wait for rate cuts on variable cards. Most cards are variable-rate (prime + a margin), so when the Federal Reserve cuts rates, your APR falls automatically.
- Improve your credit profile. Lower utilization and a longer on-time history qualify you for lower-APR cards and stronger transfer offers over time.
See the full step-by-step in How to Get a Lower APR on Your Credit Card.
FAQ
How much interest does 28% APR cost per month on $5,000?
About $117 in the first month (a $5,000 balance × 28% ÷ 12). As you pay the balance down, the monthly interest shrinks because it is charged on the remaining balance.
How long does it take to pay off $5,000 at 28% APR?
It depends on your payment. Paying $200/month takes about 3.2 years and $2,591 in interest. Paying $500/month clears it in 1.0 years with only $761 in interest.
Is 28% a good APR for a credit card?
28% is on the higher end of credit-card APRs, common on store cards and subprime cards. At this rate, carrying a balance is costly — a lower-APR card, balance transfer, or rate-reduction request can save a lot.
How can I lower a 28% APR?
Three common paths: call your issuer and ask for a rate reduction (about 30% of people who ask get 2–8 points off), move the balance to a 0% promotional balance-transfer card if your credit qualifies, or — on variable-rate cards — your APR falls automatically when the prime rate drops.
Interest at other APRs
👉 Know your balance instead? See payoff plans by balance or use the payoff calculator.