It is better to make the minimum payment on your credit card, instead of missing or skipping a payment, even though it may have a negative impact on your credit score. If you use a credit card payment calculator, you can determine the minimum payment. However, if you miss a payment, you will incur more fees and mounting interest charges in the long run.
Credit cards have become a necessity in the need of personal finance and I am sure you would agree with the same if you have either 1 or more credit cards with you. Even if not and if you want to own a new credit or already own one, then you should already be aware of nuances of how credit card payments are important for maintaining your credit score as well as how your credit score defines your future value in the credit realm for finances.
Through this article, we aim to help you understand the calculation of credit card payment but to help you understand better, we deep dive into minimum payments and how it’s calculated with examples. This article gives you just not the credit card minimum payment calculator but provides formulas, insights and more.
Minimum Credit Card Payment Calculator
So credit card calculators divided into minimum and maximum payment and both their calculations or calculator found from below.
Formula for Minimum Credit Card Payment
So the credit card payment calculator also known as credit card minimum payment calculator, which calculates as the credit balance multiplied with minimum payment percentage i.e, credit card interest rate.
Minimum Payment = Balance × Minimum Payment Percentage
Minimum Payment = Balance x Minimum Interest Rate
Formula for Credit Card Maximum Payment
And in case you want to know the maximum credit card payment that you would need to pay, then it would be as follows.
Maximum Payment = Total Credit Loan x Minimum Payment Percentage
Minimum Payment = Total Credit Loan x Minimum Interest Rate
If you have taken a credit card balance of $3,000, and then the minimum payment percentage is 5% then below would be the minimum credit card payment to be paid.
Minimum Payment = Credit Balance * 2%
Minimum Payment = $3,000 * 0.02 (2%) = $60
So, the minimum payment for this example would be $60.
Table showing Minimum Payments over Three Months:
Assuming the same balance of $3,000 and a minimum payment percentage of 2%, here’s a table illustrating minimum payments over three months:
Also read: ExxonMobil Credit Card Login
How is Credit Card amount calculated?
Your current balance is the sum of all charges on your credit card, including spending, withdrawals, and any added fees.
Credit card payment calculator India:
You can use the formula mentioned earlier or explore online credit card payment calculators specific to India for more accurate results.
Credit card interest calculator monthly payment:
Calculate interest by multiplying the outstanding balance by the monthly interest rate. Add this interest to your monthly payment.
What is a Credit card calculator:
Online credit card calculators are available to help you estimate payments, payoff time, and interest.
What is Monthly interest charge:
Calculate monthly interest by multiplying the outstanding balance by the monthly interest rate.