Credit Card Calculator
Calculate credit card payoff time, monthly payments, and total interest with detailed payment schedules
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Specifications
Outstanding credit card debt balance
Annual percentage rate on your credit card
Fixed amount you plan to pay monthly
Advanced Settings - Minimum Payment Calculation
Repayment Details
Enter your unpaid balance and APR to see repayment details
Example Calculation
Credit Card Payoff Example
Scenario: $5,000 credit card balance at 18% APR
Monthly Payment: $150 (fixed payment)
Minimum Payment: ~$100 (2% of balance)
Results
Time to Payoff: 39 months (3.25 years)
Total Interest Paid: $858
Total Amount Paid: $5,858
Savings vs. Minimum Payments: $2,147 in interest and 63 months sooner!
Credit Card Debt Tips
Pay More Than Minimum
Even $25 extra can save thousands in interest
Pay Highest APR First
Focus on high-interest debt first (avalanche method)
Stop Using the Card
Avoid adding new charges while paying off debt
Consider Balance Transfer
0% intro APR cards can save on interest
Credit Card Facts
Average APR is around 18-24% for most cards
Minimum payments typically 2-3% of balance
Interest compounds daily on most credit cards
Keep utilization below 30% for good credit score
Pay in full each month to avoid interest charges
Understanding Credit Card Debt
How Credit Card Interest Works
Credit cards use revolving credit with compound interest calculated daily. Your APR is divided by 365 to get the daily periodic rate, which is applied to your average daily balance.
Minimum Payment Structure
- •Typically 2-3% of outstanding balance
- •Usually has a minimum floor (e.g., $25)
- •Covers interest plus small principal amount
- •Paying only minimum can take decades to payoff
Debt Payoff Strategies
Debt Avalanche
- • Pay minimums on all cards
- • Put extra money toward highest APR card
- • Mathematically optimal approach
- • Saves most money on interest
Debt Snowball
- • Pay minimums on all cards
- • Put extra money toward smallest balance
- • Provides psychological motivation
- • May cost more in total interest
Types of Credit Cards
- ✓Secured: Requires security deposit, good for building credit
- ✓Unsecured: Traditional cards, no deposit required
- ✓Rewards: Earn cash back, points, or miles
- ✓Balance Transfer: 0% intro APR for debt consolidation
- ✓Student: Designed for college students with limited credit
Important Terms
- APR (Annual Percentage Rate)
- Yearly cost of borrowing including fees and interest
- Grace Period
- Time between statement and due date to pay without interest
- Credit Utilization
- Percentage of available credit you're using
- Balance Transfer
- Moving debt from one card to another, often at lower rate