1. What is a Credit Card Amortization Table?

A credit card amortization table shows how each payment is divided between principal and interest over time. It helps visualize how long it will take to pay off debt 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 Calculation

Details: Understanding amortization helps with debt repayment planning, comparing payment options, and seeing the true cost of carrying credit card debt.

4. Using the Calculator

Tips: Enter your current credit card balance, annual percentage rate (APR), and your planned monthly payment amount. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why does most of my payment go to interest at first?
A: Early in repayment, your balance is highest so the interest portion is largest. As the balance decreases, more of each payment goes to principal.

Q2: How can I pay off my debt faster?
A: Increase your monthly payment amount. Even small increases can significantly reduce total interest and repayment time.

Q3: What happens if I make only minimum payments?
A: Minimum payments mostly cover interest, leading to very long repayment periods and high total interest costs.

Q4: Does this calculator account for new charges?
A: No, this assumes no additional charges are made 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 if your card issuer uses daily interest calculations.