Why are payments so ineffective?

Most early payment goes to interest. Pay more than the minimum whenever possible.

Most early payment goes to interest. Pay more than the minimum whenever possible.

Other Finance

Credit Card Calculator

See the time and interest required to pay off a credit card balance.

Balance

APR

Monthly Payment

$$I_t = B_{t-1}\cdot r,\qquad P_t = \text{Payment} - I_t,\qquad B_t = B_{t-1}-P_t$$

Where

I_tmonthly interest

B_tbalance

P_tprincipal portion

rmonthly APR

tmonth index