Calculate credit card payments, interest, and payoff time based on your balance, APR, and monthly payment.
| Month | Payment | Interest | Principal | Balance |
|---|
Monthly payment = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1]
P = principal, r = periodic interest rate, n = number of payments.The calculator applies the entered principal or balance, periodic interest rate, repayment term and any supported fees or extra payments. Payment and interest figures depend on compounding frequency, payment timing and which taxes, insurance or charges are included.
The Credit Card Calculator is used to estimate the cost of carrying a credit card balance and demonstrate how balance, APR and payment amount affect repayment. Using the calculator (the inputs will vary the results), one can estimate a monthly interest charge, amount paid, payoff period or the payment needed to achieve a desired payoff period. The calculation is an estimate based on the input and assumptions entered.
Actual credit card charges may be different because of the use of daily interest calculations, variable APRs, fees, promotional rates, and specific account payment rules used by issuers.
Enter the values that match your credit card account or the repayment scenario you want to evaluate.
Check the recent statement of the card before entering the balance and APR. Card providers set separate interest rates for purchases, cash transfers, and cash advances; ensure you're checking the right rate for the kind of loan your card balance covers.
The Credit Card Calculator will use your current debt information including balance, interest rates, payment amount and repayment details to try to forecast the cost or time to pay off the balance.
In the fixed payment case, payments and accrued interest generally result in interest charged to outstanding balance and payment deducted for the period, and interest generally reduces over time as outstanding balance declines for a fixed rate.
A credit card may not always work out just like the calculation of a simple installment loan. In fact, a good number of credit card companies calculate interest based on average daily balances, or daily periodic rates; therefore it’s a good idea to know acalculator which works in a simplified month- by month fashion should be considered an approximation, rather than being an illustration of the credit card statements of some not too distant future.
For a simplified fixed-rate monthly model, the monthly interest rate can be represented as:
Monthly Rate = APR ÷ 100 ÷ 12
For a balance B, monthly rate r, and fixed monthly payment P, the estimated number of payments can be calculated as:
n = −ln(1 − rB/P) ÷ ln(1 + r)
It assumes the interest rate is unchanging, you'll make your payments on time, and will be nothing else comes down thepike in terms of fees or other charges. A real credit card account could do calculation of this more interest for their actual result.
Consider a hypothetical U.S. credit card with a $5,000 balance, a 24% APR, and a planned payment of $300 per month.
Using the simplified fixed-rate model:
n = −ln(1 − (0.02 × 5,000 ÷ 300)) ÷ ln(1.02)
This produces approximately 20.9 monthly payments, so the balance would be paid over approximately 21 months, assuming the final payment is adjusted to the remaining balance.
The estimated total paid is approximately $6,230, including roughly $1,230 in interest under this simplified model.
Note: This example is used for illustration only. The actual credit card interest could be different due to daily compounding interest, how and when you make payments, fees, new charges, change in the APR.
The calculator shows the result based on your request-e.g. your approximated monthly interests paid, sum of interests, loan's repaid term, whole payback or what has been paid monthly.
Use the tool for comparison not a guaranteed financial prediction - for instance you can compare different amounts that will be paid each month while keeping the principal and APR unchanged.
APR The Annual Percentage Rate for your card based on the relevant terms. Your card APR will be factored into how to estimate carrying balance. It may not describe how your account will look like with each bill though.
Most credit card accounts use a daily periodic rate. So the interest can be dependent on the account balance on each individual day, the day payments are made, when the transactions take place, and the conditions of the account. Monthly-rate calculation is helpful for planning purposes but might not be identical to what is used for the issuer's statement calculation.
By using other payment examples you can demonstrate how the various repayment assumptions are impacting the estimated cost. For the example below of a $5,000 balance and 24% APR, a basic monthly compounding interest structure is applied:
| Monthly Payment | Approximate Payoff Period | Approximate Interest |
|---|---|---|
| $150 | 56 months | $3,300 |
| $200 | 35 months | $1,950 |
| $250 | 26 months | $1,430 |
| $300 | 21 months | $1,230 |
| $400 | 15 months | $820 |
The figures are estimates generated from the stated assumptions and are not issuer-specific payoff quotes. Actual results can differ.
You know what’s going into a calculator. This type of calculator may assumes:
If any of these assumptions change, the actual repayment result can change as well.
Based on inputs and the calculator design, it can calculate the fees for a credit card balance or the amount of interest, repayment time, total payments or payment needed.
Interest is calculated either based on a daily periodic rate or average daily balance. The calculator also does a quick monthly interest calculation to help you get a ball-park figures.
Based on your balance, APR and desiredpayoffperiod the payment required can vary. By entering alternative payment amounts, or desired timeframe, you will be able to contrast payment scenarios.
In many cases, however, making extra payments towards an interest-bearing balance decreases that balance faster and you can lower future interest costs under the terms of your account. The amount of savings varies, however, depending upon the way your card's interest is calculated and its other fees.
Each card balance can be independently assessed. However if you need compare multiple cards in a package you might need details on APR, minimum pay, outstanding balance & Amount left to repay for each card.
Your calculator's assumptions may be less detailed or less comprehensive than your issuer's calculations, taking into account daily interest calculations, pay dates, fees, new purchases, promotional rates, and other factors based on your account.
Enter the expected amount, rate and term, calculate a base case, then increase the rate or shorten the term. Compare the monthly payment and total interest to understand the trade-off between cash flow and borrowing cost.