1. What is the Credit Card Payoff Calculator?

The Credit Card Payoff Calculator estimates how long it will take to pay off credit card debt based on your current balance, monthly payment, and interest rate. It uses the same formula as NerdWallet's tool to calculate payoff time.

2. How Does the Calculator Work?

The calculator uses the credit card payoff formula:

Where:

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

Explanation: The formula calculates how many months it will take to pay off debt when making fixed monthly payments, accounting for compound interest.

3. Importance of Payoff Calculation

Details: Knowing your payoff timeline helps with financial planning, debt management, and understanding the true cost of credit card debt.

4. Using the Calculator

Tips: Enter your current credit card balance, the fixed monthly payment you can afford, and your card's APR. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What if my payment is too low to pay off debt?
A: If your monthly payment doesn't cover the interest (D ≤ P×R), the calculator will show that the debt will never be paid off.

Q2: How accurate is this calculator?
A: It provides a mathematical estimate assuming fixed payments and interest rates. Actual results may vary with changing rates or payments.

Q3: Does this account for minimum payments?
A: No, this calculates payoff time for fixed payments. Minimum payments typically extend payoff time significantly.

Q4: Should I include fees in the balance?
A: For most accurate results, use your current statement balance including any accrued interest/fees.

Q5: How can I pay off debt faster?
A: Increase monthly payments, reduce spending, or consider balance transfer options with lower interest rates.