1. What is a Credit Card Amortization Schedule?

A credit card amortization schedule shows how each payment is split between interest and principal reduction, and how the balance decreases over time until the debt is fully paid off.

2. How Does the Calculator Work?

The calculator uses these formulas:

Where:

• Outstanding Balance — Remaining principal at start of month ($)
• R — Monthly interest rate (APR / 12, as a decimal)
• D — Monthly payment ($)

Explanation: Each payment first covers the interest due, then the remainder goes toward reducing the principal balance.

3. Importance of Amortization Schedule

Details: Understanding your amortization schedule helps you see how much interest you're paying and how increasing payments can reduce both payoff time and total interest.

4. Using the Calculator

Tips: Enter your current credit card balance, APR, and your planned monthly payment amount. The calculator will show how long it will take to pay off and how much interest you'll pay.

5. Frequently Asked Questions (FAQ)

Q1: Why does most of my payment go to interest at first?
A: Early in repayment, your balance is highest so interest charges are largest. As the balance decreases, more of each payment goes toward principal.

Q2: How can I pay off my credit card faster?
A: Increase your monthly payment amount, even slightly. This reduces principal faster, which then reduces future interest charges.

Q3: What's the difference between APR and monthly rate?
A: APR is the annual rate. The monthly rate is APR divided by 12, which is what's actually applied to your balance each month.

Q4: What if I make extra payments?
A: Extra payments reduce principal faster, shortening payoff time and reducing total interest. The calculator assumes fixed payments.

Q5: Why does my minimum payment take so long to pay off?
A: Minimum payments are often just slightly more than the interest due, so very little goes toward principal, extending payoff time.