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Potential Savings by Removing Credit Card Debt

 
 
Potential Savings by Removing Credit Card Debt
1. Credit Card Balance
2. Annual Credit Card Interest Rate
3. Estimated Number of Years to Pay Off Debt
4. Growth Rate on Fund Used to Pay Off Credit Card
Total Savings by Paying Off Credit Card Debt: 
 
Interest Saved1
Total Savings if Invested2
 
 
 
   
Note: This calculator assumes that payments would have been made at the end of each month and interest would have been compounded monthly. The monthly interest rate is calculated by dividing the annual interest rate by 12.

1. The total potential savings of paying off the credit card balance now is calculated by determining the difference between waiting and paying off the amount now. For simplicity, the potential savings is the interest paid on the balance at the credit card interest rate minus the annual growth rate on the other fund.

2. For simplicity, the total savings is the interest saved grown at the same growth rate on the other fund (line 4) for the same number of years that would have been required to payoff the debt (line 3).
 

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We do not offer legal advice. All information provided on this website is for informational purposes only and is not a substitute for proper legal advice. If you have legal questions, we recommend that you seek the advice of legal professionals.

Tax Disclaimer: To ensure compliance with IRS Rules, any U.S. federal tax advice provided in this communication is not intended or written to be used, and it cannot be used by the recipient or any other taxpayer (i) for the purpose of avoiding tax penalties that may be imposed on the recipient or any other taxpayer under the Internal Revenue Code, or (ii) in promoting, marketing or recommending to another party a partnership or other entity, investment plan, arrangement or other transaction addressed herein.

Copyright 2017 Wink Tax Services / Wink Inc.
Last modified: January 30, 2017