Credit Card Payoff Calculator Weekly Payment Formula

Weekly Payment Formula:

\[ T = \frac{\log\left(\frac{P}{P - (D \times 4) \times R}\right)}{\log(1 + R)} \]

Time to Payoff:

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1. What is the Weekly Payment Formula?

The weekly payment formula estimates time to pay off credit card debt with weekly payments, accounting for principal balance, weekly payment amount, and annual interest rate.

2. How Does the Calculator Work?

The calculator uses the formula:

\[ T = \frac{\log\left(\frac{P}{P - (D \times 4) \times R}\right)}{\log(1 + R)} \]

Where:

$ P $ — Principal balance ($)
$ D $ — Weekly payment ($)
$ R $ — Monthly interest rate (APR / 12)
$ T $ — Time to payoff (months)

Explanation: The formula calculates how many months it will take to pay off a credit card balance with weekly payments, considering 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, weekly payment amount you can afford, and the card's APR. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why multiply weekly payment by 4?
A: The formula converts weekly payments to monthly equivalents (4 weeks ≈ 1 month) to work with the monthly interest rate.

Q2: What if I make extra payments?
A: Extra payments will reduce payoff time. Recalculate with your new payment amount.

Q3: How accurate is this estimate?
A: It's a mathematical estimate assuming fixed payments and interest rate. Actual payoff may vary with rate changes or payment adjustments.

Q4: What's the fastest way to pay off credit cards?
A: Pay as much as possible weekly, starting with highest-interest cards first (avalanche method).

Q5: Does this work for other types of loans?
A: This specific formula is designed for credit cards. Other loans may use different calculation methods.