1. What is the RBC Credit Card Payment Calculator?

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

2. How Does the Calculator Work?

The calculator uses the RBC credit card payment formula:

Where:

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

Explanation: The equation calculates how many months it will take to pay off your credit card debt based on your current payment amount and interest rate.

3. Importance of Payment Calculation

Details: Understanding how long it will take to pay off your credit card debt helps with financial planning and can motivate you to increase payments to reduce interest costs.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What if my payment is too low to pay off the debt?
A: The calculator will show "∞" if your monthly payment is less than the monthly interest charges, meaning you'll never pay off the debt at that payment rate.

Q2: How accurate is this calculator?
A: It provides a good estimate assuming you make consistent payments and don't add new charges to the card.

Q3: Does RBC use this exact formula?
A: This is a standard formula for calculating credit card payoff time. RBC may use slight variations in their internal calculations.

Q4: How can I pay off my debt faster?
A: Increase your monthly payment amount, make bi-weekly payments instead of monthly, or consider a balance transfer to a lower-interest card.

Q5: Does this account for minimum payments?
A: You can enter any payment amount, including RBC's minimum payment (typically 3% of balance or $10, whichever is higher).