1. What is the Credit Card Repayment Calculator?

This calculator estimates how long it will take to pay off your FNB credit card debt based on your current balance, monthly payment amount, and annual percentage rate (APR).

2. How Does the Calculator Work?

The calculator uses the credit card repayment formula:

Where:

• \( P \) — Principal balance (ZAR)
• \( D \) — Monthly payment (ZAR)
• \( R \) — 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 fixed monthly payments and compound interest.

3. Importance of Repayment Calculation

Details: Understanding your repayment timeline helps with financial planning, budgeting, and evaluating different payment strategies to reduce interest costs.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Why does my payment need to exceed the monthly interest?
A: If your payment only covers interest (D ≤ P×R), your principal will never decrease and the debt will never be paid off.

Q2: How can I pay off my debt faster?
A: Increase monthly payments, make bi-weekly payments instead of monthly, or transfer to a lower-interest card if possible.

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

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

Q5: Are there fees not accounted for?
A: This doesn't include late fees, annual fees, or other charges that may affect your actual repayment.