How it is calculated
The calculation repeats each month:
- Interest = balance × annual rate ÷ 12
- New balance = balance + interest − monthly payment
- Stop when the balance reaches zero or below. The last payment may be smaller.
If the monthly payment does not exceed the first month’s interest, the balance never falls and the calculator shows an error message. If the balance cannot be cleared within 600 months (50 years), it shows a message too.
Worked example
Balance RM5,000, 18% per year, RM300 monthly payment:
- First month’s interest: RM5,000 × 18% ÷ 12 = RM75
- The balance is cleared in 20 months
- Total interest: RM797.17
- Total paid: RM5,797.17
If the payment were only RM70 a month, it would not exceed the first month’s interest, so the balance would never be paid off.
Why your number may differ
Interest compounds monthly on the unpaid balance, and paying only the minimum takes much longer. This calculator assumes no new purchases. The actual rate is shown on your card statement.