1. What is the Credit Card Payoff Calculator?

This calculator compares two common methodologies (Credit Karma and Experian) for calculating how long it will take to pay off credit card debt based on your current balance, monthly payment, and interest rate.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

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

Explanation: The equation calculates how many months it will take to pay off the debt based on the relationship between your payment and the interest accrued each month.

3. Credit Karma vs Experian Methodologies

Credit Karma: Displays results in years and months (e.g., "2 years, 5 months") for easier understanding.

Experian: Displays results in total months (e.g., "29 months") for precise comparison.

4. Using the Calculator

Tips: Enter your current credit card balance, the fixed monthly payment you plan to make, and your card's APR. The calculator will show you how long it will take to pay off under both methodologies.

5. Frequently Asked Questions (FAQ)

Q1: Why are there two different results?
A: Both use the same mathematical formula but present results differently - Credit Karma shows years+months while Experian shows total months.

Q2: What if my payment is too low?
A: If your payment doesn't cover the monthly interest, your debt will grow and the calculator will warn you.

Q3: Does this account for minimum payments?
A: No, this assumes fixed payments. Minimum payments would require a more complex calculation.

Q4: How accurate is this calculator?
A: It's mathematically precise for fixed payments and interest rates, but actual results may vary if rates change.

Q5: Should I pay more than the minimum?
A: Yes! Even small increases in monthly payments can significantly reduce payoff time and total interest paid.