1. What is the FNB Credit Card Budget Calculator?

The FNB Credit Card Budget Calculator helps you determine how long it will take to pay off your FNB credit card balance based on your current principal, monthly payment, and interest rate.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

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

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

3. Importance of Payoff Calculation

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

4. Using the Calculator

Tips: Enter your current credit card balance, the amount you can pay each month, and your annual interest rate. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why does my payment need to exceed the interest?
A: If your payment only covers the interest (or less), your principal will never decrease and you'll never pay off the debt.

Q2: How can I pay off my credit card faster?
A: Increase your monthly payment amount or make additional payments whenever possible.

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

Q4: What if my interest rate changes?
A: This calculation assumes a fixed rate. For variable rates, recalculate when your rate changes.

Q5: Are there fees included in this calculation?
A: No, this only considers principal and interest. Late fees or other charges would affect actual payoff time.