1. What is the Credit Card Repayment Calculation?

The credit card repayment calculation estimates how long it will take to pay off your NatWest 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 following formula:

Where:

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

Explanation: The formula calculates the number of months required to pay off the debt assuming fixed monthly payments and constant interest rate.

3. Importance of Repayment Calculation

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

4. Using the Calculator

Tips: Enter your current credit card balance, your planned monthly payment amount, 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 interest?
A: If your payment only covers the interest (or less), you'll never pay off the principal. The minimum payment must exceed the monthly interest charge.

Q2: How accurate is this calculation?
A: It assumes fixed payments and constant APR. Actual results may vary if your balance, payments, or rate changes.

Q3: What's a good monthly payment amount?
A: Ideally, pay more than the minimum. Doubling the minimum can reduce payoff time significantly.

Q4: Does this include fees?
A: No, this calculation only considers interest. Late fees or other charges would extend payoff time.

Q5: How can I pay off my card faster?
A: Increase monthly payments, make biweekly payments, or transfer to a lower-interest card.