Credit & Debt
Payment needed to finish in a chosen number of months
The same relationship solved for payment instead of time. Pick the payoff deadline and read off what that costs each month.
The Formula
P = (B x rm) / (1 - (1 + rm)^-n)
The same relationship solved for payment instead of time. Pick the payoff deadline and read off what that costs each month.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| P | Required monthly payment | currency | The fixed amount that retires the balance in exactly n months. |
| n | Target number of months | months | Any positive whole number. Larger targets give smaller payments but more total interest. |
What Each Symbol Means
Pcurrency
Required monthly payment
The fixed amount that retires the balance in exactly n months.
nmonths
Target number of months
Any positive whole number. Larger targets give smaller payments but more total interest.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate credit card payoff time page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Credit Card Payoff Time, filed under Finance. Every number the guide produces comes from substituting into this one line.