1. What is the Credit Card Payment Calculator?

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

2. How Does the Calculator Work?

The calculator uses the 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 formula calculates how many months it will take to pay off the balance by considering the compounding interest and fixed monthly payments.

3. Importance of Payment Calculation

Details: Understanding your payoff timeline helps with financial planning, debt management, and evaluating the impact of making larger payments.

4. Using the Calculator

Tips: Enter your current credit card balance, the fixed amount you can pay each month, and your card's annual interest rate. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What if I make only minimum payments?
A: The calculator shows the timeline for your current payment amount. Minimum payments will result in much longer payoff times and more interest paid.

Q2: How can I pay off my card faster?
A: Increase your monthly payment amount. Even small increases can significantly reduce payoff time and total interest.

Q3: Does this account for additional charges?
A: No, this assumes no new charges are added to the card and you make consistent monthly payments.

Q4: What's a good monthly payment amount?
A: Ideally, pay the full balance each month. If carrying a balance, pay as much above the minimum as possible.

Q5: How accurate is this calculator?
A: It provides a good estimate but actual results may vary slightly due to rounding in real credit card statements.