1. What is the Credit Card Repayment Calculator?

This calculator estimates how long it will take to pay off your Commonwealth Bank credit card debt based on your current balance, monthly payment, and interest rate.

2. How Does the Calculator Work?

The calculator uses the credit card repayment formula:

Where:

• \( P \) — Principal balance (AUD)
• \( D \) — Monthly payment (AUD)
• \( R \) — Monthly interest rate (APR / 12 as decimal)
• \( T \) — Time to pay off (months)

Explanation: The formula calculates how many months it will take to pay off the debt given your monthly payment and interest rate.

3. Importance of Repayment Calculation

Details: Understanding your repayment timeline helps with financial planning and shows how increasing payments can significantly reduce interest costs and payoff time.

4. Using the Calculator

Tips: Enter your current credit card balance, the amount you can pay each month, and your card's interest rate. The calculator will show how long it will take to become debt-free.

5. Frequently Asked Questions (FAQ)

Q1: What is Commonwealth Bank's typical credit card interest rate?
A: CommBank's standard purchase rate is typically around 19.9% p.a., but this can vary based on the specific card and your creditworthiness.

Q2: Why does my debt never seem to go down?
A: If your monthly payment is close to the interest charge, very little goes toward the principal. Try to pay more than the minimum payment.

Q3: How can I pay off my credit card faster?
A: Increase your monthly payment, make fortnightly instead of monthly payments, or consider a balance transfer to a lower interest rate card.

Q4: Does this calculator account for additional charges?
A: No, it assumes no additional purchases or fees are added to the card during the repayment period.

Q5: What's the minimum payment on CommBank credit cards?
A: Typically the greater of 2-3% of the balance or $10-$35, depending on the card. Paying only the minimum will result in maximum interest costs.