Credit card companies typically calculate a minimum monthly payment required to keep your account in good standing. This calculation is crucial for understanding how long it will take to pay off your debt and the total interest you'll accrue.
There are two main ways your minimum monthly payment is determined:
Percentage of Balance: Most cards calculate the minimum payment as a percentage of your current balance, often combined with a small fixed dollar amount (e.g., 2% of the balance plus $10). If the calculated percentage is very low, the fixed dollar amount ensures you make a reasonable minimum payment.
Fixed Payment Amount: Some cards may have a flat minimum payment amount regardless of the balance, or you might choose to pay more than the minimum to accelerate debt repayment. Our calculator allows you to input a specific fixed payment if you prefer.
How the Calculator Works:
This calculator helps you estimate your minimum required monthly payment based on your current balance, annual interest rate, and the card issuer's typical calculation method (percentage of balance).
For simplicity in this calculator, if a 'Fixed Monthly Payment' is entered, it overrides the minimum percentage calculation. Otherwise, it calculates based on the minimum payment percentage. Note that actual credit card calculations can be more complex and may include additional fees or specific processor rules.
Example: If your balance is $5,000, the annual interest rate is 19.99%, and the minimum payment percentage is 2%:
Monthly Interest Rate = 19.99% / 12 = 1.6658%
Interest for the month = $5,000 * (1.6658 / 100) = $83.33
Payment towards balance (2% of balance) = $5,000 * (2 / 100) = $100.00
Estimated Minimum Payment = $100.00 (if no fixed dollar amount applies or is higher)
If you enter a fixed payment, say $150, that value will be used as your monthly payment.
Why is this important?
Making only the minimum payment on a credit card can lead to paying significantly more in interest over a long period, sometimes doubling the original cost of your purchases. Using this calculator can help you:
Understand your immediate payment obligation.
Compare different cards' minimum payment structures.
Realize the impact of paying only the minimum versus paying more.
For a more accurate repayment estimate including how long it takes to pay off debt, consider using a full credit card payoff calculator.
function calculateMonthlyPayment() {
var balance = parseFloat(document.getElementById("balance").value);
var annualRate = parseFloat(document.getElementById("annualRate").value);
var minimumPaymentPercent = parseFloat(document.getElementById("minimumPaymentPercent").value);
var fixedPaymentInput = document.getElementById("fixedPayment").value; // Get as string first
var resultAmountElement = document.getElementById("result-amount");
var resultDetailsElement = document.getElementById("result-details");
// Clear previous results and error messages
resultAmountElement.textContent = "$0.00";
resultDetailsElement.textContent = "";
// Input validation
if (isNaN(balance) || balance < 0) {
resultDetailsElement.textContent = "Please enter a valid current balance.";
return;
}
if (isNaN(annualRate) || annualRate < 0) {
resultDetailsElement.textContent = "Please enter a valid annual interest rate.";
return;
}
if (isNaN(minimumPaymentPercent) || minimumPaymentPercent 0) {
var fixedPayment = parseFloat(fixedPaymentInput);
monthlyPayment = fixedPayment;
calculatedDetails = "Your fixed monthly payment has been set to $" + fixedPayment.toFixed(2) + ".";
} else {
var monthlyRate = annualRate / 100 / 12;
var interestForMonth = balance * monthlyRate;
var principalPayment = balance * (minimumPaymentPercent / 100);
// In reality, there's often a minimum dollar amount, but for this calculator, we'll use the percentage calculation as the primary method if no fixed payment is given.
// A common structure is MAX(percentage_calc, minimum_dollar_amount). We'll simplify here.
monthlyPayment = principalPayment;
// Ensure minimum payment is at least the interest due, if calculated percentage is lower
if (monthlyPayment 0 && monthlyPayment < 1.00) {
monthlyPayment = 1.00;
calculatedDetails += " Minimum payment set to $1.00.";
} else if (balance === 0) {
monthlyPayment = 0;
}
resultAmountElement.textContent = "$" + monthlyPayment.toFixed(2);
resultDetailsElement.textContent = calculatedDetails;
}