CareCredit Deferred-Interest Calculator
Example: Amount financed: 3000 $ · Promo (no-interest) months: 12 · Deferred APR: 26.99 % · Your planned monthly payment: 200 $
| Retroactive interest if you miss | $810 |
| Payment needed to avoid interest | $250 |
| Projected shortfall | $600 |
Worked example
Say you finance a $3,000 dental bill on a 12-month, no-interest CareCredit promo at a 26.99% deferred APR, and you plan to pay $200 a month. Over 12 months you would pay $2,400, leaving a $600 shortfall at the deadline. Because the card charges interest retroactively on the full $3,000 across the whole promo window, you would get hit with roughly $810 in interest, all at once, on a bill you had nearly paid off. To avoid it entirely you would need to pay about $250 a month, clearing the full $3,000 before the promo ends. The lesson: size your payment to the payoff, not to what feels affordable.
Frequently asked questions
How is deferred interest different from a normal 0% offer?
A true 0% offer waives interest during the promo no matter what. Deferred interest only postpones it: if you do not pay the entire balance by the deadline, the card retroactively charges interest on the original amount from the purchase date, not just on the leftover balance. That is why a small shortfall triggers a large charge.
Is the retroactive interest really on the full original balance?
Yes. That is the defining feature of a deferred-interest plan. Even if you paid off 95% of the balance, missing the deadline by one dollar can trigger interest calculated on 100% of the original purchase across the entire promo period. This tool models exactly that worst case.
What payment do I need to be safe?
Divide your balance by the number of promo months and pay at least that amount every month. The tool shows this as the payment needed to avoid interest. The card's own minimum payment is usually lower than this, which is precisely how borrowers get caught.
What if I cannot pay it off before the promo ends?
Consider whether a lower-rate personal loan or a 0% balance-transfer card could refinance the balance before the deadline, so you avoid the retroactive charge. Also ask the provider about a plain no-interest payment plan or financial assistance, which may be cheaper than the card in the first place.
Does paying the monthly minimum protect me?
No. Paying only the minimum almost guarantees a balance remains at the deadline, which triggers the full retroactive interest. The minimum is not designed to clear the balance within the promo. Always base your payment on the payoff-by-deadline number this calculator provides.