Credit Card Repayment Calculator

A credit card repayment calculator helps you estimate how long it will take to pay off your credit card debt and how much interest you will pay. It takes into account your current balance, interest rate, and monthly payment amount to show you the total cost of your debt.

Credit card interest is typically calculated using the following factors:

• Annual Percentage Rate (APR) - converted to daily rate
• Average Daily Balance
• Number of days in the billing cycle
• Compounding frequency (usually daily)

The minimum payment on a credit card is typically calculated as a percentage of your current balance (usually 1-3%) or a fixed amount, whichever is higher. However, paying only the minimum will result in paying more interest and taking longer to pay off the debt.

There are several strategies to pay off credit card debt faster:

• Pay more than the minimum payment each month
• Use the debt avalanche method (pay highest interest rate first)
• Use the debt snowball method (pay smallest balance first)
• Consider balance transfer to a lower interest rate card
• Create a strict budget and cut unnecessary expenses

A good credit card interest rate varies depending on your credit score and the type of card. Generally, rates below 15% are considered good, while rates above 20% are considered high. The best rates are usually reserved for those with excellent credit scores.