Formula
Each month, interest is the APR divided by 12, and the rest of the payment reduces the balance:
Total interest = sum of each month's interest
The payoff page leads with the time. This page leads with the interest dollars.
Assumptions
- The APR and the payment stay fixed.
- No new charges are added.
Worked example
A $5,000 balance at 19.9% paid at $150 a month costs $2,338.94 in interest.
Input definitions
- Monthly payment
- A fixed amount that must be greater than one month of interest.
Limitations
This is an estimate, not a loan offer, tax filing, or investment advice. The currency control changes the symbol only.
Questions
Why was my payment rejected?
If the payment is less than or equal to the month's interest, the balance never falls.
Are fees included?
No. Only interest on the balance you typed.