You can use this credit card payment calculator to figure out what your minimum monthly credit card payment might be for each of the major credit card issuers. You can use one of our other loan calculators to figure out how quickly you can pay off a credit card balance.
The variables used in our online calculator are defined in detail below, including how to interpret the results.
This is the outstanding credit card balance, or previous balance, that you're carrying for this account. If you pay off your credit card in full each month, the balance would be zero. If you do not pay the balance in full, then enter the balance you're carrying over from the prior month.
This is the Annual Percentage Rate, or APR, charged on your outstanding balance. You can usually find the APR charged on your credit card statement, or in the terms and conditions supplied by your credit card issuer.
A transaction fee is usually a nominal fee charged when you're carrying an outstanding balance on your credit card. This fee is typically in the range of $0.50 to $5.00, and the exact fee can be found in your credit card terms and conditions.
In 2003, the Office of the Comptroller recommended that credit card issuers modify their minimum payment formula to allow consumers to pay off a portion of their outstanding balance. The OCC recommendation was adopted by most credit card companies, and the formula is simply: Minimum Payment = Transaction Fees + APR (%) x Outstanding Credit Card Balance + 1% x Outstanding Credit Card Balance. Bank of America, MBNA, Citibank, and Wells Fargo have adopted the OCC method of calculating minimum payments.
The minimum monthly credit card payment formula used by J.P. Morgan Chase is the greater of the OCC Recommendation, or 2% of the current credit card balance.
The minimum monthly credit card payment formula used by Capital One Financial is the larger of 3% of the Outstanding Credit Card Balance or $15.00
This calculator produces three sets of minimum monthly credit card payments. The three formulas represent nearly all of the major credit card issuers as indicated above.
Credit Card Payment Calculator
Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.