1. What is a Credit Card Amortization Schedule?

A credit card amortization schedule shows how each payment is split between principal and interest over time. It helps you understand how long it will take to pay off your balance and how much interest you'll pay.

2. How Does the Calculator Work?

The calculator uses these formulas:

Where:

• Outstanding Balance — Remaining principal at start of month ($)
• R — Monthly interest rate (APR / 12, as a decimal)
• D — Monthly payment ($)

Explanation: Each payment first covers the interest due, then the remainder goes toward reducing the principal.

3. Importance of Amortization Schedule

Details: Understanding your amortization schedule helps you make informed decisions about debt repayment strategies and see the true cost of carrying a balance.

4. Using the Calculator

Tips: Enter your current credit card balance, APR, and the fixed monthly payment you plan to make. The calculator will show your repayment timeline and total interest costs.

5. Frequently Asked Questions (FAQ)

Q1: What if I make larger payments?
A: Larger payments will pay off your balance faster and reduce total interest paid. Try different payment amounts to see the impact.

Q2: Why does most of my payment go to interest at first?
A: When your balance is high, more of your payment covers interest. As the balance decreases, more goes toward principal.

Q3: What happens if I only make minimum payments?
A: Minimum payments mostly cover interest, resulting in very slow principal reduction and much higher total interest costs.

Q4: Does this account for additional charges?
A: No, this assumes no new charges are added to the card during repayment.

Q5: How accurate is this calculator?
A: It provides a good estimate, but actual results may vary slightly due to rounding or billing cycle differences.