The Center For Debt Management
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Minimum Monthly Payment
Credit Card Calculator

This calculator will calculate how long it will take you to liquidate your current balance on a particular credit card account and the amount of interest that you would end up paying. It assumes that there will be no additional charges or fees added to the account. It answers the following question:

How long will it take me to liquidate my account balance and how much interest would I have to pay if I were to only make the "minimum" monthly payment required?

  • Enter your current "Account Balance" in appropriate field.
  • Enter the "Annual Percentage Rate" in the appropriate field.
  • Enter the "Minimum Payment Amount" in the appropriate field.
  • Click once on the "Calculate" button to calculate your result.
  • Use the "Reset" button to calculate another account, or new data.

The Minimum Payment Percentage field defaults to 3% and the Minimum Payment Amount field defaults to $15. These amounts are very typical in the credit card industry, however, you may change these fields as you deem appropriate.

ENTER AMOUNTS HERE
Account Balance: $
Annual Percentage Rate (APR):    %
Minimum Payment Percentage:    %
Minimum Payment Amount: $


  
VIEW RESULT HERE
Amount of Interest You Would Pay: $
Number of Payments Required to Liquidate Debt:   
Number of Years to Required Liquidate Debt:   
 

How To Determine The Amount
For Each Required Field

Your current Account Balance and Annual Percentage Rate can be found on your most recent billing statement. If you have a special introductory rate, and/or a different Annual Percentage Rate for purchases, balance transfers, etc, it may require several computations using the respective balance for each rate. If most of the balance is attributed to a specific category, say, balance transfers, and an insignificant amount attributed to, say, purchases, simply using the specified APR for balance transfers may yield a fairly close representation.

Note: If the APR is 18% and you enter 18, the computer will automatically convert it to a decimal, which would be .18. But if the APR is less the 1%, such as, .9% which would be rare on a credit card, you will need to enter it in decimal form, in this case, .009. If you enter it as .9 as one would tend to do, the computer will make the computation assuming that the APR rate is 9% rather than .9%. You must also convert 1% to a decimal, .01.


The Minimum Payment Percentage may be noted in the small print on the reverse side of your statement, but it might only be stated in the "terms of agreement," which you may or may not still have on file. You might, however, be able to calculate it yourself by analyzing your statement. It depends on whether the amount stated in the "Minimum Payment Due" (or similar) box reflects any "past due" amounts. If it does not, simply divide the amount stated in the box by the current account balance. For Example:

Minimum Payment Due = $150 divided by Account Balance = $5,000 equals = 3%

Most credit card merchants have a Minimum Payment Percentage rate of 2% to 3%. If you are unsure, you may want to use 2%, 2.5% or 3%. Or try all three and see the difference a half point makes. The computer defaults to 3%.


The Minimum Payment Amount is NOT the amount listed as your "Minimum Payment Due" on your statement. Rather it is the minimum amount required should your balance fall below a certain point. For example, let's assume that the "Minimum Payment Amount" is $15 and the "Minimum Payment Percentage" is 3%. If your current balance is $1,000, your minimum payment due would be $30 (3% of $1,0000.). But when your account balance falls to $250, although 3% of $250 is $7.50, your minimum payment due would be $15, which is the "Minimum Payment Amount" required by the creditor.

Most credit card vendors require $10 to $25. The computer defaults to $15 which is typical.

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