How long to pay off $2,000 at 18.99% APR paying $500 a month?
5 months
Paying $500 a month clears $2,000 at 18.99% APR in 5 months — 5 months — costing about $82 in interest.
How it is worked out
Interest is charged monthly on whatever is left, so the months to clear come from the payment, the balance and the monthly rate. If the payment is smaller than the monthly interest, the balance never falls at all.
months = log(500 ÷ (500 − $2,000 × 1.58%)) ÷ log(1 + 1.58%) = 4.16
Total interest about $82, on top of the $2,000 borrowed.
Open the full credit card payoff calculator to use your own figures.
Similar questions
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Questions
- How long to pay off $2,000 at 18.99% APR paying $500 a month?
- Paying $500 a month clears $2,000 at 18.99% APR in 5 months — 5 months — costing about $82 in interest. months = log(500 ÷ (500 − $2,000 × 1.58%)) ÷ log(1 + 1.58%) = 4.16.
- How is this worked out?
- Interest is charged monthly on whatever is left, so the months to clear come from the payment, the balance and the monthly rate. If the payment is smaller than the monthly interest, the balance never falls at all.
- Can I use my own figures?
- Yes — the credit card payoff calculator takes any values and shows the full result.