What is this calculator for?
Okay, so I put this tool together to help you figure out one of two things. In the “Pay-off Calculator” portion, you will be able to determine how much longer you will have to make your minimum monthly payment for a credit card (or any other interest-based account) to completely pay it is. The “Monthly Payment Calculator” on the other hand will help you figure out how much you should be paying each month to completely pay off an interest-baring account over a specified period of time.
HOW MUCH LONGER WILL I BE PAYING OFF MY CREDIT CARD BILL?
How do I use the Pay-off Calculator? What do the fields mean?
I tried to make sure this was as easy to use as possible, but I understand that some people might not know all of the finance terms off the top of their heads. So, let’s look at it line by line:
Currency: Choose what type of monetary unit your region uses. For the most part, (I expect that) most of you will be using USD, which is the abbreviation for United States Dollar.
Card Balance: Use this box to enter how much money you still owe on your credit card.
APR: This box is where you will enter the interest rate (APR) for the account you are trying to pay off. And, just because I know some of you might be wondering, APR stands for Annual Percentage Rate.
Minimum Monthly Payment Amount: Here, enter the absolute lowest payment your credit card issuer will allow you to pay each month.
After filling those out, click “Calculate” and the length of time to pay off your balance will appear where I have marked the image above with a red rectangle. It will also display how much you will have paid in interest over the course of that time, which could be surprising if you’ve never used a calculator like this before.
And what about the Monthly Payment Calculator?
Considering that three of the four boxes in this calculator are shared with the previous one discussed, I’m only going to mention the one box with the purple arrow and circle, which might actually be the easiest box to understand:
How Many Months to Pay it Off?: Just enter the number of months you would like to have your balance completely paid off by.
When you click calculate, your results will appear where I put that red rectangle for the calculator’s image. It will show you how much you’ll have to pay each month to pay off your account in the amount of months you typed in, the total interest you will have paid by then and the total amount you will pay over that time.
I hope you guys find these calculators useful, let me know if you have any suggestions for future tools!