Adam McCann, Financial Writer
@adam_mcan
You can calculate your monthly credit card payment from multiplying the monthly interest rate by the outstanding balance. Your card's monthly rate can be obtained by dividing its APR by 12 for the number of months in a year. The simplest way to do that is using a credit card calculator.
How to Calculate Your Monthly Credit Card Payment
- Open a free credit card calculator.
- Fill in your card’s balance and APR.
- Choose the option for calculating the payments needed to pay off your credit card within a certain amount of time.
- Fill in the number of months until you want to have your card paid off.
- Click the “Calculate” button.
- Check the results to see your monthly payment, as well as the amount of interest you’ll pay and how much you could save by increasing your monthly payments.
Keep in mind that your monthly credit card payment can be any amount between the minimum set by your issuer and your entire balance. You also do not have to pay the same amount every month. You can also find this information by logging in to your online account or contacting your card’s issuer.
You can learn more about credit card payments here on WalletHub.
People also ask
How is credit card interest calculated?
Credit card interest is calculated by dividing the card’s APR by 365 to get the “daily periodic rate,” then multiplying it by the card’s average daily balance to get the interest accrued in one day. Finally, multiply by the number of days in the billing period to get the monthly interest.
Fortunately, you will not owe interest if your credit card has a grace period and you pay the bill in full by the due...
read full answer by John S Kiernan, Managing EditorWhat is the minimum payment on a 2,000 credit card balance?
The minimum payment on a $2,000 credit card balance is at least $20, plus any fees, interest, and past-due amounts, if applicable. If you were late making a payment for the previous billing period, the credit card company may also add a late fee on top of your standard minimum payment. The exact formula your credit card’s issuer uses to calculate minimum payments is available in the card’s terms and conditions.
Minimum Payment on...
read full answer by Chip Lupo, Credit Card WriterHow much interest will I pay on my credit card?
You can figure out how much interest you will pay on your credit card by dividing the card’s APR by 365 and multiplying first by your average daily balance and then by the number of days in the billing period. The interest charges you owe will also be listed on the credit card’s monthly statement.
For example, with an 18% APR, your daily rate is 18 ÷ 365 = 0.0493%. If your average daily...
read full answer by WalletHub, Financial CompanyDid we answer your question?
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