GuidesDebt1 min
Debts you already owe · Lesson 4 of 11
A credit card balance and rate
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Type the balance you owe, the purchase APR as a yearly percent, and the minimum the statement asks for.
The balance is the principal
Use the statement balance you intend to pay down, not the credit limit. The limit is not a field. A higher limit does not change the math.
New spending next month is not forecast. If you add to the card, type the new balance. The schedule assumes the balance only moves by this payment.
The rate is yearly
A 22.99% APR is typed as 22.99. The monthly rate is that number divided by twelve, in percent terms. The calculator does not apply a daily periodic rate or a grace period.
A card you pay in full before interest starts can be left out, or entered at a zero balance. A zero balance will not join the month.
The minimum
Type the minimum from the statement. Percent-of-balance minimums change as the balance falls. This tool keeps the minimum flat at the number you typed, which can make a late payoff a bit pessimistic or a bit optimistic depending on the issuer’s formula.
If that flat minimum does not cover interest, the date will say so. Raise it to a payment you will actually make.
This explains how WiseCalculator treats the numbers you type. It is not a lender’s offer and it is not advice for your loan.
More in Debt
- A personal loan beside the cardsA personal loan is another row: balance, rate, and the fixed payment. It shares the extra payment by the size of that payment.
- Medical debt in the same listA medical bill is a row with a balance, a rate, and what you pay each month. A zero rate is allowed.
- A student loan as one rowEach loan you want in the month needs its own balance, rate, and payment. Income-driven plans that change the payment are not modeled.