Credit Card Payoff Formula:
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The Axis Bank Credit Card Calculator estimates how long it will take to pay off your credit card debt based on your current balance, monthly payment, and interest rate. It helps you plan your debt repayment strategy.
The calculator uses the credit card payoff formula:
Where:
Explanation: The formula calculates how many months it will take to pay off the debt given fixed monthly payments and compound interest.
Details: Understanding your payoff timeline helps with financial planning, budgeting, and evaluating whether you should increase payments or consider balance transfers.
Tips: Enter your current credit card balance in INR, your planned monthly payment in INR, and your APR (annual interest rate). All values must be positive numbers.
Q1: Why does my payment need to exceed the monthly interest?
A: If your payment only covers interest, your principal will never decrease. The calculator checks that payment > (principal × monthly rate).
Q2: What if I make additional payments?
A: The calculator assumes fixed monthly payments. Any additional payments will shorten your payoff time.
Q3: Does this account for late fees or other charges?
A: No, it only calculates based on principal, interest, and your fixed payment amount.
Q4: How accurate is this calculator?
A: It provides a good estimate but actual payoff may vary if your interest rate changes or payments aren't consistent.
Q5: What's the best strategy to pay off credit card debt faster?
A: Pay more than the minimum, consider balance transfers to lower-rate cards, or explore debt consolidation options.