Whether you are estimating on the spot or checking a result somebody else gave you, the credit card payment calculator is the quickest way to get from compounding frequency, credit card balance, minimum percentage type, minimum percentage, minimum payment, monthly payment with…, due date, interest rate apr and payback within to desired payoff date and payoff date.
What Is the Credit Card Payment Calculator?
The credit card payment calculator takes compounding frequency, credit card balance, minimum percentage type, minimum percentage, minimum payment, monthly payment with..., due date, interest rate apr and payback within and turns them into desired payoff date and payoff date.
It is the kind of calculation you would otherwise do on the back of an envelope: mechanical, repeatable and easy to get subtly wrong without noticing.
How the Credit Card Payment Figure Is Built
Each result is calculated from the ones before it, so the working is fully visible. That matters when the answer is going to be quoted to somebody else and you need to be able to explain where it came from.
The figures are exactly as good as the assumptions underneath them. Check the rates, the periods and the tax treatment before you rely on the result.
Reading the Result Sensibly
A small change in an input can move the result by much more than you would expect, particularly where the calculation divides by one of the figures you supplied. That is worth understanding before you rely on a figure.
For anything that will be committed to, write the inputs down beside the result. A number you can reproduce is worth far more than one you cannot explain.
A Worked Example
Working through an example, with compounding frequency set to 1, credit card balance set to 10, minimum percentage type set to 1, the calculator returns desired payoff date of 830.5, and payoff date of -. Substitute your own figures and the same steps produce the same kind of answer.
Frequently Asked Questions
What do I need to work out desired payoff date?
Enter compounding frequency, credit card balance, minimum percentage type, minimum percentage, minimum payment, monthly payment with..., due date, interest rate apr and payback within. The calculator then works through the relationship and reports desired payoff date and payoff date.
What does the credit card payment actually calculate?
It takes compounding frequency, credit card balance, minimum percentage type, minimum percentage, minimum payment, monthly payment with..., due date, interest rate apr and payback within and converts them into desired payoff date and payoff date using the standard relationship for this problem. Each step is applied in turn, so every output is traceable back to the numbers you typed in.
How should I enter compounding frequency?
Use the value you actually have, in the unit shown next to the field. Enter every value in the same unit system. The calculator assumes the figures you supply are consistent, so it cannot correct a mistake that happens before the calculation starts.
Is the answer exact?
It is as exact as the formula and the inputs allow. The method itself is the standard one for this problem, so the only sources of error are the figures you enter and the precision you ask for.
Why does a small change in one value move the answer so much?
That happens when an output depends on a ratio, because dividing by a small number magnifies any change in it. Check the units first, then check whether the value you entered is in the range the relationship was designed for.