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The **Credit Card Equation** calculator computes the amount of time required to payoff a credit card, or other fixed rate loan, based on the annual interest rate (**APR**), total balance (**b**). and monthly payment (**p**).

**INSTRUCTION:** Choose units and enter the following:

- (
**APR**) Annual Percent Rate of interest - (
**b**) Balance of the credit card debt - (
**p**) Monthly Payment

**Payoff Time (N):** vCalc will return the time to pay off the credit card in months. However this can be automatically converted to other time units (e.g. weeks or years) via the pull-down menu.

The formula for the credit card equation is:

`N = - 1/30 * ln(1 + b/p*(1-(1+"APR"/365)^30))/ln(1+"APR"/365)`

where:

- N = number of months to payoff the credit card
- APR = credit card annual interest rate
- b = balance of the credit card
- p = monthly payment to be made

**NOTE:** This payoff period assumes a fixed rate of interest AND that no other principle is added to the balance.

The Credit Card Equation calculator calculates the number of months (**N**) to pay off a credit card with a fixed annual rate (**APR**) based on a regular payment (**p**) against a standing debt (**b**). **APR **is listed in the credit card contract and may appear on the credit card statement. An article from Value Penguin cites that APRs have an average between **16% and 18%** based on the type of card.

This formula is very useful in determining whether additional payments or increased payments should be made in order to pay off a credit card in an acceptable period.

- Monthly Loan Payment - computes the monthly payment of a fixed interest rate loan (e.g., home mortgage or car loan).
- Credit Card Equation- computes the number of months to pay off a credit card.
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- Current Mortgage Rates:
- 30 Year Fixed Interest Rate: 6.62 %
- 15 Year Fixed Interest Rate: 6.15 %
- 7/6 SOFR ARM: 6.57 %

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