FNB Credit Card Calculator Payoff Schedule

Credit Card Payoff Formula:

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

Time to Pay Off:

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1. What is the Credit Card Payoff Calculator?

This calculator determines how long it will take to pay off your FNB credit card debt based on your current balance, monthly payment amount, and annual interest rate.

2. How Does the Calculator Work?

The calculator uses the credit card payoff formula:

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

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 debt given fixed monthly payments and compound interest.

3. Importance of Payoff Calculation

Details: Understanding your payoff timeline helps with financial planning and shows the impact of making larger payments to reduce interest costs.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What if my calculation shows an error?
A: This usually means your monthly payment is too low to cover the interest charges, so 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 fixed payments. Minimum payments typically extend payoff time significantly.

Q4: What if my interest rate changes?
A: You'll need to recalculate with the new rate as the result depends on the current rate.

Q5: How accurate is this calculator?
A: It provides a good estimate assuming fixed payments and interest rate, but actual results may vary slightly.