1. What is the Credit Card Repayment Calculator?

This calculator determines how long it will take to pay off a credit card balance when making fixed monthly payments, accounting for interest charges. It helps consumers understand the true cost of carrying credit card debt.

2. How Does the Calculator Work?

The calculator uses the credit card repayment formula:

Where:

• \( P \) — Principal balance ($)
• \( D \) — Monthly payment ($)
• \( R \) — Monthly interest rate (annual rate ÷ 12)
• \( T \) — Time to repay (months)

Explanation: The formula calculates how many months are needed to pay off the balance when making fixed payments that cover both principal and interest.

3. Importance of Calculating Repayment Time

Details: Understanding repayment time helps consumers make informed decisions about credit card usage, compare payment options, and avoid long-term debt traps.

4. Using the Calculator

Tips: Enter your current credit card balance, the fixed monthly payment you can afford, and the card's annual interest rate. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why does my repayment time show as infinite?
A: This happens when your monthly payment is less than or equal to the monthly interest charges, meaning you're not reducing the principal balance.

Q2: How can I pay off my credit card faster?
A: Increase your monthly payment amount, reduce your interest rate (e.g., through balance transfer), or make bi-weekly instead of monthly payments.

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

Q4: What if my interest rate changes?
A: The calculation assumes a fixed interest rate. For variable rates, you'll need to recalculate when rates change.

Q5: Are there other factors that affect repayment?
A: Yes, late fees, additional charges, or changes to your payment amount will affect actual repayment time.