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Credit Card Interest Calculator

Don’t let interest be a mystery to you. The more you know, the less you will pay… and we’re here to help you every step of the way!

The interest you pay on your credit card debt can quickly get out of hand and make your initial purchase cost far more than you planned. Don’t unknowingly pay $20 for a $5 latte! It might be a great latte, but it’s probably not that great! (If it is, send us an email about it; we love lattes!) Okay, back to the good stuff: it’s super important to know how your interest is impacting your overall payment.

Using a credit card interest calculator can help determine just how much you're paying in interest and how long it'll actually take you to pay off your balances.

When you enter numbers in the calculator, it tells you how long it will take to pay off your debt and the total amount you’ll pay in interest. Love math? Click the “view report” button to get a more detailed analysis of your results.

 

What Do The Credit Card Interest Rate Results Mean?

The credit card calculator is actually pretty simple. Just put in a few numbers and you'll get the following information:

  • Payoff Period: How long it will take to pay off your debt if nothing else changes
  • Total Debt: How much credit card debt you have all together
  • Total Interest: How much you'll be paying in interest if everything remains the same

You may be asking ‘why is this info even needed?’ Seeing the numbers in black in white just might give you the kick you need to pay it off quicker. And we all need a little nudge sometimes, right?

Credit Card Interest Calculator Definitions

Here are a few of the terms you should know when using the credit card interest calculator.  Read up and you’ll be the sensei of credit card interest in no time!

Use Minimum Payment

If you checked the "use credit card minimum payments" box, your monthly payment is calculated as 4% of your current outstanding balance. With the "use credit card minimum payments" box checked, your monthly payment will decrease as your balance is paid down. This can significantly increase the time it takes to pay off your credit cards. Uncheck this box to enter your monthly payment that will remain the same until your balance is paid in full. 

(We calculate your minimum monthly payment as 4% of your current outstanding balance. While your actual minimum monthly payment may be slightly different, this is one of the most common ways credit card companies calculate minimum payments.)

Credit Card Balance

This is your total current balance for this credit card.

Credit Card Interest Rate

This is the annual percentage rate you pay for this credit card. The rate you enter is used to calculate the interest on all future credit card payments. The length of time to pay off this credit card may be much greater than calculated if you enter a low promotional interest rate that is only good for a short period.

Credit Card Payment

This is your initial monthly payment. If you checked the "use credit card minimum payments" box, your monthly payment is calculated as 4% of your current outstanding balance. 

With the "use credit card minimum payments" box checked, your monthly payment will decrease as your balance is paid down. This can greatly increase the length of time it takes to pay off your credit cards. Uncheck this box to enter your monthly payment that will remain the same until your balance is paid in full. 

(We calculate your minimum monthly payment as 4% of your current outstanding balance. While your actual minimum monthly payment may be slightly different, this is one of the most common methods used by credit card companies to calculate minimum payments.)

Loan Balance

Your total current balance for an installment loan.

Loan Interest Rates

The annual percentage rate you pay for this loan. Enter the current interest rate for this loan. This calculator assumes your rate will remain the same for the entire repayment period. Here at UMe, all our personal loan, auto loan & credit card rates are FIXED, which means your rate will remain the same. (No rate hike surprises from us!) We use this to calculate the interest you will pay and the number of payments that are remaining.

Loan Payment

This is your monthly payment. Enter the actual monthly payment for your loan. We use this to determine your payment totals and to calculate the remaining payments.

Remaining Loan Payments

This is the number of payments remaining for this loan. It is based on your current balance, payment, and interest rate.

What to Do After Getting Your Credit Card Interest Calculator Results

Once you get your results from your credit payoff calculator, spend time determining if you're satisfied with your payoff plan, or that you want to reduce your payoff period or total interest. We know you’ll make the best plan for you, but if you need any help - just give us a call and we will help because #UmattertoMe 

In most cases, you’ll find that you’re paying too much in interest and could be using that money for other things (like buying more lattes). 

If you realize that you have better things to spend your money on than credit card interest, take a look at our rates. We’re ready to help you save and whip those interest charges into shape! 


Check Out Our Interest Rates

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