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 interest 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 by accounting for the compounding interest each month.

3. Importance of Repayment Calculation

Details: Understanding your repayment timeline helps with financial planning, budgeting, and evaluating whether you should increase payments or consider balance transfers.

4. Using the Calculator

Tips: Enter your current credit card balance, the fixed monthly amount you plan to pay, and your annual interest rate (APR). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What if my payment is too low to pay off the debt?
A: The calculator will show an error if your payment doesn't cover the monthly interest (payment ≤ principal × monthly rate).

Q2: Does this account for minimum payments?
A: No, this assumes fixed payments. Minimum payments typically extend repayment time significantly.

Q3: How accurate is this calculation?
A: It's accurate for fixed payments and interest rates. Actual time may vary if rates change or payments fluctuate.

Q4: What's the best way to pay off credit card debt faster?
A: Increase monthly payments, reduce spending, or consider a lower-interest balance transfer or consolidation loan.

Q5: Does this work for other types of loans?
A: This formula is specific to credit card debt with compounding interest. Other loans may use different calculations.