1. What is the Credit Card Payoff Calculator?

This calculator estimates how long it will take to pay off credit card debt in the Philippines based on your current balance, monthly payment, and annual interest rate (APR).

2. How Does the Calculator Work?

The calculator uses the credit card payoff formula:

Where:

• \( P \) — Principal balance (PHP)
• \( D \) — Monthly payment (PHP)
• \( R \) — Monthly interest rate (APR / 12 as decimal)
• \( T \) — Time to pay off (months)

Explanation: The formula calculates how many months it will take to pay off the debt given your monthly payment and interest rate.

3. Importance of Calculating Payoff Time

Details: Understanding your payoff timeline helps in financial planning and shows the true cost of carrying credit card debt. Even small changes in monthly payments can significantly affect payoff time.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Why is my payment not paying off the debt?
A: If your monthly payment is less than the monthly interest (P × R), your balance will grow rather than shrink.

Q2: What's a typical credit card APR in the Philippines?
A: APRs typically range from 24% to 36% annually (2-3% monthly) in the Philippines.

Q3: How can I pay off my debt faster?
A: Increase monthly payments, make bi-weekly payments instead of monthly, or consider balance transfer to lower-rate cards.

Q4: Does this include late fees or other charges?
A: No, this calculates only interest. Additional fees would require higher payments to pay off in the same timeframe.

Q5: What if I make variable payments?
A: This assumes fixed payments. Variable payments would require more complex calculations.