Online Savings Calculators and Tools




Credit Card Comparison Calculator



Credit Card Comparison Calculator

Enter a balance amount to use to make comparison:
Enter a monthly payment amount:
Must be greater than monthly interest charge
Comparison Card #1 Card #2
Annual fee (optional):
Enter introductory annual interest rate (optional):
Term of introductory rate (# months - optional):
Enter the regular annual interest rate:
Enter the compounding period:
Number of payments till paid off:
Total costs:


Credit Card Comparison Calculator Information



You receive two credit card offers in the mail from two separate banks. Maybe you need to make a large purchase and you’d like to delay payment for a few weeks before you receive your paycheck, or you’re thinking about transferring balances from high interest credit cards to one location. How do you know which card is the best choice? Because of annual fees and introductory rates, the decision is often not as simple as choosing the card with the lowest interest rate. That’s where the credit card comparison calculator comes in.

To use this calculator, you will need to have two credit cards in mind and a balance. Let’s say that you are planning to transfer the balances from a few credit cards you already have over to a new card, and that the combined balance would total $1,200. That is the balance you’ll use for the calculator.

You’ll need to know what monthly payment you’ll be making on the card. The minimum due is often interest plus 1% of the balance, but we’re comparing two cards here so the interest will vary. To calculate a reasonable minimum payment, assume that the average interest would be 15%. This would yield a minimum payment of $27 ($1,200 x (.15/12) plus $1,200 x .01).

Many credit cards require an annual fee to the cardholder. For this example, we’ll assume card #1 has an annual fee of $39, while card #2 has an annual fee of $59. Next, there’s the option of adding an introductory rate. Some cards allow you to transfer balances with 0% interest for a year. Card #2 will offer this promotion, while card #1 will offer an introductory rate of 5% on balance transfers.

After the introductory interest rate, a standard rate will apply. Standard rates typically run from 11.9% – 29.9%, depending on the cardholder’s creditworthiness. Card #1 will offer a standard rate of 15.9%, while card #2 will offer a standard rate of 19.9%.

Credit card interest is generally compounded monthly, so we’ll leave the compounding period as it stands. When we compute the number of payments, we find that, if the minimum $27 is paid on this credit card every month, both cards would take a total of 59 months, or just under five years, to be completely paid off. Notice, however, that the interest costs and fees differ. Card #1 would cost you a total of $565.79 in interest and fees over the five year period, while card #2 would cost $681.86.

While it takes the same amount of time to pay off each of these cards paying the minimum each month, choosing card #1 over card #2 results in a savings of $116.07. This is one way that the credit card comparison calculator can help you make a decision between two credit card offers.

You can also change the payment amount per month to see how the payment term differs if you put more than the minimum towards your card. If you were to put $100 per month towards the card in the example, your payment term would shorten to 13 months.

If you’re looking for a calculator to help you find the best way to pay your way out of credit card debt, consult the debt snowball calculator. You’ll be able to list your debts in order of priority, and see how changing the priority of your debts can shorten the amount of time needed to become debt free.

The best way to get your finances in order and get yourself out of debt is to consult a financial professional. A financial planner can help you understand how to pay down your debts and stay debt free.