Home Back

Credit Card Monthly Repayment Calculator Personal Loan

Monthly Payment Formula:

\[ D = P \times \frac{R}{1 - (1 + R)^{-N}} \]

$
%
months

Unit Converter ▲

Unit Converter ▼

From: To:

1. What is the Credit Card Monthly Repayment Formula?

The credit card monthly repayment formula calculates the fixed payment amount needed to pay off a credit card balance (used as a personal loan) within a specified timeframe, considering the interest rate.

2. How Does the Calculator Work?

The calculator uses the formula:

\[ D = P \times \frac{R}{1 - (1 + R)^{-N}} \]

Where:

Explanation: This formula accounts for the compounding interest on your credit card balance and calculates the fixed payment needed to amortize the debt over the specified period.

3. Importance of Calculating Monthly Payments

Details: Understanding your required monthly payment helps with budgeting and ensures you can pay off your debt within your desired timeframe while minimizing interest costs.

4. Using the Calculator

Tips: Enter your current credit card balance, the annual percentage rate (APR), and your desired payoff period in months. The calculator will show your required monthly payment, total payment, and total interest.

5. Frequently Asked Questions (FAQ)

Q1: What if I pay more than the calculated amount?
A: Paying more than the minimum will reduce your payoff time and total interest paid. You can recalculate with a shorter payoff period to see the impact.

Q2: How accurate is this calculator?
A: This provides an estimate assuming your APR remains constant and you make consistent payments. Actual results may vary if your APR changes.

Q3: What's a good payoff timeframe?
A: Generally, shorter payoff periods save money on interest but require higher monthly payments. Choose a balance between affordability and interest savings.

Q4: Does this work for other types of loans?
A: This formula works for any fixed-rate amortizing loan, including personal loans, though credit cards typically have higher interest rates.

Q5: What if I have multiple credit cards?
A: Calculate each card separately, or sum all balances and use a weighted average APR for an overall estimate.

Credit Card Monthly Repayment Calculator Personal Loan© - All Rights Reserved 2025