Most credit card company require a minimum of a $15 payment if money is owed.

The balance is reduced as follows: Balance = Balance - (Monthly Payment - Interest Portion)

Where the Interest Portion is given as follows: Interest Portion = (APR / 12) * Amount Owed

* APR is the Annual Percentage Rate

Credit Card Debt Definition Credit card debt is eating away at the wallets of Americans and people around the world. There are many ways to get out of debt, but the first thing you need to learn is how much debt you will actually owe. This Credit Card Debt Calculator allows you to figure out how much money you will pay for the debt that you have. It also has some clever concepts that allow you to learn how to pay down your debt faster. Make sure that you understand that the calculators will give you an extremely close estimate, but you need to check with your lender to find the exact amount of debt. Take the time to gather all of your credit card debt information before you go to the calculator. You will need to know your current balance, APR, and how your monthly payment is configured.

The Calculator Functions The first function requires you to put in your total amount of debt on the credit card. You will then have to put in the APR on your credit card. This information can usually be found on your monthly statement. If it does not appear on your statement, call the credit card company to get the information. You will also need to find out how your lender figures out your monthly payment. Once you have those three pieces of information, you will quickly see how to calculate your total costs and faster methods of repayment.

The Initial Results Once you input the information, you will be given the amount that you will pay for the life of the credit if you only pay the minimum payment each month. This number may be shocking to anyone that does not have a true understanding of the credit card business.

Option 2 – The Additional Payment After you get your initial results, figure out how much extra you can put on the balance of your credit card each month. You can continually change the numbers, so it is in your best interest to start with a lower extra payment and then work your way up to the higher numbers. When you have that information into the calculator, click on the calculate button again. Your new results will come onto the screen.

Option 3 – A Fixed Amount Some people like to have a fixed payment each month to add to pay off the credit card debt. This is a great idea because you will pay down your debt faster. It also frees you from worrying about how much to pay each month. Simply keep the information from before into the online calculator, and then put in the fixed amount that you want to pay each month. Again, hit the calculate button and you will get your new figures to work with.

The Results You will likely find that you can pay down your debt faster by increasing the amount that you put onto your monthly bill. You will become debt free quicker, and you will save an immense amount of money in interest. Take the time to figure out how you can put the calculator to the best use by truly deciding how much extra you can pay each month.

How Debt is Figured Out Your monthly payment is the total of your monthly amount due plus the interest. The balance is reduced by subtracting the monthly payment and the interest. The interest portion of your debt is the APR divided by 12. That is the amount owed. Also, check out some of our other credit card calculators like the Credit Card Balance TransferÂ and the Credit Card Cash Back calculator

How to Calculate Credit Card Debt Let's be honest - sometimes the best credit card debt calculator is the one that is easy to use and doesn't require us to even know what the credit card debt formula is in the first place! But if you want to know the exact formula for calculating credit card debt then please check out the "Formula" box above.