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Credit Card Calculator

Welcome to our Credit Card Calculator—a powerful tool designed to help you take control of your credit card finances. Easily estimate interest, payments, and payoff strategies to make informed financial decisions

Credit card companies advise customers to pay the minimum payment as a guideline to avoid extra fees and increased interest rates. The problem is that just making the minimum payment, it will take you longer to pay off your balance, and you’ll pay more interest to the credit card company.

This calculator allows you to estimate the length of time and interest you can save if you repay more than your minimum repayment on your credit card.

How Do Calculate Your Credit Card Payments

We take into consideration many details and with the data you provide we can give you an estimate of your minimum payment.

  • Annual Card Fee – An annual card fee, also known as an annual fee, is a fee charged once a year by a credit card company for the use of a credit card. This fee is typically charged in exchange for the benefits and rewards that come with the credit card, such as cash back, points, or other perks. Annual card fees vary depending on the type of credit card, the issuer, and the benefits associated with the card.
  • Annual Interest Rate – The annual interest rate, also known as the annual percentage rate (APR), is the percentage rate at which interest is charged on a loan or credit card balance over the course of one year. It represents the cost of borrowing money, expressed as a percentage of the total amount borrowed or outstanding balance. The annual interest rate takes into account not only the interest charged, but also any other fees or charges associated with the loan or credit card.
  • Balance Outstanding – Balance outstanding, also known as outstanding balance, refers to the amount of money that remains unpaid on a loan, credit card, or other type of debt at any given time. It is the total amount borrowed minus any payments or credits that have been applied to the balance.


What is a Credit Card?

A credit card is a plastic payment card issued by a financial institution, such as a bank or credit union, that allows the cardholder to borrow money to make purchases or pay for services. When a credit card is used to make a purchase, the cardholder is essentially borrowing money from the financial institution that issued the card. 

The cardholder is required to pay back the borrowed amount, along with any interest and fees charged by the issuer, according to the terms and conditions of the card agreement.

Credit cards offer a convenient way to make purchases without carrying cash, and they can also be used for online and phone transactions. They often come with rewards programs, such as cash back or points for purchases, as well as benefits such as travel insurance and purchase protection. However, credit cards can also be a source of debt if not used responsibly, and carrying a balance can result in high interest charges and fees.

How Repayment Models Work

The repayment model of credit cards is a rather confusing and complex concept that sets it apart from other forms of debt such as car finance or P&I home loan repayments. It involves a repayment amount that is based on a percentage of the balance owed, usually ranging between 2% and 3% per month, depending on the lender.

This payment covers both the interest as well as a part of the credit card balance, causing a reduction in the minimum repayment amount for the following month. However, this dynamic repayment model makes it such that there is no exponential decrease in debt over time, leading to a significantly longer period of time required to pay down the entire debt based on the minimum repayment.

In light of this, it is highly recommended that consistent monthly repayments or additional repayments on top of the minimum are made to accelerate the payment of the balance owed. This approach makes financial sense given that the interest rates on credit cards are generally much higher than other forms of debt.

If you require assistance in determining the repayment amount for your credit card, it is advisable to consult with an Excellence Finance Mortgage Broker today.

Please note that the calculations provided by this calculator are merely an estimate and do not encompass all fees and charges. They should not be relied upon as the sole basis for making a decision regarding a loan. Additionally, interest rates and other costs may fluctuate over time, which may impact the total cost of the loan. Therefore, borrowers should consider discussing their individual financial situation with a qualified Australian Credit Licensee or Authorised Credit Representative (Excellence Finance Mortgage Broker).

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