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Credit Card Payoff Calculators determine credit card payment period

Credit Card Payoff Calculators enable you to figure out how long you'll take to pay off credit card bills under a fixed monthly payment plan. You will also get a credit card amortization schedule with the interest and principal amount payable on a monthly basis. In addition, the Credit Card Payoff Calculator (Credit Card Payment Calculator) determines the total interest you need to pay on the balance.

Credit Card Payoff Calculator

Calculate how long it'll take to pay off the balance

Disclaimer: The Credit Card Payment Calculator is made available to you as a self-help tool. As such, the accuracy of the figures and the applicability of the calculator in regards to your individual situation cannot be guaranteed. Also, the Credit Card Payment Calculator does not include credit balance insurance and other fees which may be optional.

Credit Card Payoff Calculator - How it works

The Credit Card Payoff Calculators (Credit Card Interest Calculator) assume that you're not using your card while paying off the balance. There's no grace period included in the calculations. The Credit Card Payoff Calculators require you to enter the principal balance, interest rate (or APR) and fixed monthly payment in order to work out the figures.

Credit Card Amortization

The Credit Card Payoff Calculators (or Credit Card Amortization Calculator) take into account the basics of amortization. Take a look at the example given below.

Emma used her credit card for a purchase worth $1000. The card details are:

APR (Annual Percentage Rate) or Interest rate = 24%
Fixed monthly payment = $100

Now, the card interest rates are mostly compounded on a monthly basis. So, the monthly interest rate here is = 24/12% = 2% (0.02)

The monthly interest (or finance charge) is added to the credit card bill each month.

First Month

Interest for the 1st month = $1000 x .02 = $20
Bill for 1st month = Principal + Interest = $1000 + $20 = $1020
Principal payment for 1st month = Fixed monthly payment - Interest = $100 - $20 = $80

The new balance (what Emma owes after the 1st month) = $1020 - $100 = $920

Second Month

Interest for 2nd month = New balance x .02 = $920 x .02 = $18.40
Bill for 2nd month = New balance + Interest = $920 + $18.40 = $938.40
Principal payment for 2nd month = $100 - $18.40 = $81.60

New balance after 2nd payment = $938.40 - $100 = $838.40

The calculation of the interest, principal payment and balance goes on till the outstanding balance is less than $100. At that time, Emma will just need to pay what she owes. This is how Credit Card Payment Calculator (or Credit Card Interest Calculator) works out a payment schedule.

Credit Card Payment Calculator variables

The variables associated with Credit Card Payoff Calculators (Credit Card Interest Calculator) are defined as follows:

Card balance: It is the total outstanding debt (including principal and interest) that you'd like to pay off.
Interest rate or APR: This is the annual interest rate charged on the outstanding balance you keep on the card each month.
Monthly payment: This is the fixed amount you pay each month towards reducing your outstanding balance. It includes payment towards the principal balance and the interest.
Credit card amortization schedule: This is the credit card payment schedule for the entire payoff period. Amortization means reduction of debt by making equal monthly payments over a certain period of time. The amortization schedule shows how much you pay as interest and principal payment and what is the outstanding balance each month, till your card balance is zero.