Purpose: Use this calculator to see how long you’d have to make monthly minimum payments to get down to a zero balance, and also to see how much interest you’ll end up paying. Enter all your information and choose “minimum payment” before clicking the “calculate” button. Wow, right? Now see how much faster you could pay off your cards – and how much you’d save in interest – by entering a fixed monthly payment amount that’s more than the minimum payment, selecting the “fixed amount” option amount and clicking “recalculate.”
Tips & Insight: Paying the minimum on your credit cards and other loans each month may seem the most tempting, but it can cost you big time in interest. Most cardholders have no idea how their interest is calculated, but that factor can make a big difference; if you don’t know how your interest is calculated on each account you hold, send an email, get on chat or call your lender and find out.