1. What is the CIMB Credit Card Payment Calculator?

The CIMB Credit Card Payment Calculator estimates how long it will take to pay off your credit card balance based on your current principal, monthly payment amount, and annual percentage rate (APR).

2. How Does the Calculator Work?

The calculator uses the credit card payoff formula:

Where:

• \( P \) — Principal balance (MYR)
• \( D \) — Monthly payment amount (MYR)
• \( R \) — Monthly interest rate (APR/12)
• \( T \) — Time to payoff in months

Explanation: The formula calculates how many months it will take to pay off the debt given fixed monthly payments and compound interest.

3. Importance of Credit Card Payoff Calculation

Details: Understanding your payoff timeline helps with financial planning and demonstrates the impact of making larger payments or reducing interest rates.

4. Using the Calculator

Tips: Enter your current credit card balance, the fixed monthly payment you can afford, and your card's APR. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What if my payment is too low to ever pay off the debt?
A: The calculator will show an error if your payment doesn't exceed the monthly interest charges (D ≤ P × R).

Q2: How can I pay off my credit card faster?
A: Increase your monthly payment amount or try to negotiate a lower APR with your card issuer.

Q3: Does this account for minimum payments?
A: No, this assumes fixed payments. Minimum payments typically extend payoff time significantly.

Q4: What if I make additional payments?
A: The calculator assumes fixed payments. Additional payments would shorten the payoff time.

Q5: Is this calculator specific to CIMB credit cards?
A: While designed with CIMB in mind, it works for any credit card with fixed-rate interest.