1. What is the Minimum Credit Card Payment?

The minimum credit card payment is the lowest amount you must pay each month to keep your account in good standing. It's typically calculated as a percentage of your balance plus any interest or fees.

2. How Does the Calculator Work?

The calculator uses the standard minimum payment formula:

Where:

• Balance — Your current credit card balance (USD)
• Interest — The interest charged for the current period (USD)
• 0.02 — Standard 2% minimum payment percentage

Explanation: Most credit card issuers require a minimum payment of 1-3% of your balance plus any interest and fees. This calculator uses the common 2% rate.

3. Importance of Minimum Payment Calculation

Details: Knowing your minimum payment helps with budgeting, but paying only the minimum will result in paying much more interest over time and taking longer to pay off your balance.

4. Using the Calculator

Tips: Enter your current credit card balance and the interest charged for the period. Both values must be non-negative numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is the minimum payment always 2%?
A: No, it varies by issuer (typically 1-3%) and may have a minimum dollar amount (e.g., $25).

Q2: What happens if I only pay the minimum?
A: You'll pay more interest overall and take much longer to pay off your balance.

Q3: How can I pay less interest?
A: Pay more than the minimum each month, ideally paying your balance in full.

Q4: Does this include fees?
A: This calculator focuses on balance and interest. Some issuers may include fees in the minimum payment.

Q5: Why is my actual minimum payment different?
A: Your card issuer may use a different percentage or include other charges not accounted for here.