Credit Card Calculator to Pay Off Debt Early

Credit Card Payoff Formula:

\[ T = \frac{\log\left(\frac{P}{P - D \times R}\right)}{\log(1 + R)} \]

Time to Pay Off:

This calculator estimates how long it will take to pay off credit card debt when making fixed monthly payments, accounting for compound interest.

The calculator uses the credit card payoff formula:

\[ T = \frac{\log\left(\frac{P}{P - D \times R}\right)}{\log(1 + R)} \]

Where:

Explanation: The formula calculates how many months are needed to pay off debt with fixed payments considering compound interest.

Details: Knowing your payoff timeline helps with financial planning, understanding interest costs, and motivating debt repayment strategies.

Tips: Enter your current balance, planned monthly payment, and annual interest rate. Payment must be greater than monthly interest (P×R).

Q1: Why does my payment need to exceed monthly interest?
A: If payment ≤ monthly interest, your balance would never decrease (perpetual debt).

Q2: How can I pay off debt faster?
A: Increase monthly payments, reduce spending, or transfer to lower-rate cards.

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

Q4: What if I make additional payments?
A: Extra payments will shorten payoff time. Recalculate with higher payment amount.

Q5: How accurate is this calculator?
A: Very accurate for fixed payments and rates. Doesn't account for fees or rate changes.