Understand revolving credit costs and choose better repayment strategies.
Overview
Credit cards are convenient but expensive when balances revolve month to month.
This calculator estimates interest and payoff behavior under chosen payment patterns.
It can show the true cost of paying only minimum amounts.
Use it to build a faster and cheaper repayment plan.
Steps
Use statement closing balance.
Input annual card interest rate.
Fixed payment or minimum-payment style.
Review how much payment goes to interest.
Increase payment and compare outcomes.
Math
Monthly Interest = Balance × (APR/12)
Card interest accrues monthly on outstanding revolving balance at periodic APR.
Worked cases
Interest = 4,500 × (0.24/12)
Monthly interest is about $90 before payment effects.
Simulate balance decline month by month.
Payoff timeline and total interest become visible.
Rerun schedule with larger payment.
Debt clears faster and interest cost drops materially.
Why use this
Questions