1. What is the Monthly Payment Formula?

The monthly payment formula calculates the fixed payment amount needed to pay off credit card debt in a specified number of months, accounting for interest charges.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( D \) — Monthly payment (Rs)
• \( P \) — Principal balance (Rs)
• \( R \) — Monthly interest rate (annual rate / 12, as decimal)
• \( N \) — Desired payoff time (months)

Explanation: The formula accounts for compound interest over the repayment period to determine a fixed monthly payment that will pay off the debt in the specified time.

3. Importance of Monthly Payment Calculation

Details: Calculating the exact monthly payment helps in budgeting and ensures you pay off debt efficiently without unnecessary interest costs.

4. Using the Calculator

Tips: Enter the current balance in Rs, annual interest rate as a percentage, and desired payoff time in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How does the interest rate affect my payment?
A: Higher interest rates result in higher monthly payments or longer payoff times for the same payment amount.

Q2: What if I can't afford the calculated payment?
A: You may need to extend the payoff period or look for ways to reduce the principal or interest rate.

Q3: Does this account for minimum payments?
A: No, this calculates the exact payment needed to pay off debt in your specified timeframe, which may be higher than the minimum payment.

Q4: Are there fees included in this calculation?
A: No, this only calculates principal and interest. Any additional fees would increase your actual payment.

Q5: How accurate is this calculator?
A: It provides mathematically exact results assuming fixed interest rates and no additional charges or payments.