Highlighted Tool: Credit Card Repayment Calculator
Welcome to the Federal Reserve’s Credit Card Repayment Calculator. Based on the information you provide, the calculator will give you an estimate of how long it will take you to pay off your credit card balance. The calculator assumes:
- you make no more charges; and
- you make only the minimum payment each month.
A second calculation can help you develop a plan for paying off your balance sooner.
How long will it take me to pay off my credit card balance if I make only the minimum payment?
Credit Card repayment calculators are a great tool for starting discussions about the true cost of credit and the different ways to pay them off. What I like about this tool is that it’s explicit about the assumptions about the borrower – he/she makes no more purchases and he/she makes only the minimum payment each month. This is certainly not the only way to pay off debt and it’s a great starting point for conversations with students about other payment options and predictions about what would happen if either of those conditions were violated. Students can then turn to other calculators to explore their predictions and to model other scenarios.If you have not already created a free account, you'll need to do so to access the Financial Education Problems of the Week.