Payment sensitivity
Compare two hypothetical rates on the same balance.
| Result | Starting: 12% | Scenario: 14% | Difference |
|---|---|---|---|
| Monthly payment | $263.34 | $273.26 | $9.93 |
| Total interest | $2,640.24 | $3,116.71 | $476.47 |
| Total paid | $12,640.24 | $13,116.71 | $476.47 |
| Months to payoff | 48 | 48 | 0 |
What the comparison assumes
Installments use equal monthly payments, a fixed nominal annual interest rate divided by 12, no fees and a fully amortizing balance. APR is treated as the interest rate because this example assumes no finance charges beyond interest. A disclosed APR that includes fees cannot be substituted without adjustment. Calculations retain full precision; displayed dollars are rounded.
The credit-card model applies one month of interest at APR ÷ 12, then a fixed payment, with no new purchases, fees, promotional rates or grace period. The final payment can be smaller. Actual cards commonly use daily periodic rates and daily balances, so this is an estimate rather than a statement calculation. Your required minimum payment may change each month.
A market-yield change does not automatically change an existing fixed-rate installment payment. A variable card’s contract and reference index determine whether and when its APR changes. The scenarios here are inputs you choose, not rate forecasts or offers. Inputs remain in this page and are not saved.
Sources: CFPB: credit-card interest · CFPB: amortization · Explore dated reference rates