Credit Card Minimum Payment Calculator Overview
Credit Cards are quickly replacing cash and checks as the most commonly used form of currency. Unfortunately, they also make it easy to spend more than you intended, and many people over-use their credit cards and rack up huge balances before they know it.
Many borrowers with large credit card balances make just the minimum monthly payment in order to free up their cash flow and postpone the pain of paying off the balance.
While this is enough to keep your credit card current and in good standing, it really doesn't help you to pay off your balance, especially if you have a high interest rate. Many people don't realize just how long it will take them to pay off their cards with a minimum monthly payment, or how much it will cost them in interest over the long run. This calculator shows you.
This calculator only allows estimates using your minimum monthly payment. If you wish to make additional monthly payments to pay your debt down more quickly, use the Roll Down Your Credit Card Debt Calculator, which allows you to make larger payments, or the Credit Card Optimizer Calculator, which shows you how to best spread your payments among cards with different interest rates.
Using the Credit Card Minimum Payment Calculator
This calculator can make determinations for up to five credit cards, both as a group and individually. As noted above, for each you need to enter:
1) Your current balance owed
2) The interest rate on that card
3) The minimum monthly payment required, in terms of percentage of the balance. The calculator assumes a minimum monthly payment of at least $15.
For each card, the calculator will determine the minimum monthly payment in dollars, the number of months needed to pay it off and the total you will pay in principle and interest during that time. These figures will display right below where you input your figures.
Your total payments of principle and interest for all cards will appear at the top of the calculator itself. Toward the bottom, you'll see a graph telling you how long it will take to pay off all your cards and illustrating the decline in your card balances over time, assuming you make no new purchases on the cards.
Hitting "View Report" will take you to a new page displaying a summary for each card and a payment schedule showing your total payment, interest and principle payments, and outstanding balance for all cards on a month-to-month basis until all cards are paid off.