Our new Credit Card Payment Calculator will help you calculate your minimum payment and estimate how long it will take you to pay off your credit card by making either minimum payments or fixed payments. See below for more information about how to calculate the minimum payment on your credit card.

This calculator will help you realize just how much it really costs to pay the minimum on your credit card. There IS one case in which it might actually be beneficial to only pay the minimum. Read on below to find out when.

Unlike our debt reduction calculator and credit card payoff calculator, this spreadsheet lets you see how long it will take to pay off your credit card if you make only the minimum payment month-after-month.

### Credit card calculator

This credit card minimum payment calculator is a simple Excel spreadsheet that calculates your minimum payment, total interest, and time to pay off. It also creates a payment schedule and graphs your payment and balance over time.

You can now add extra payments into the Payment schedule to see how making occasional extra payments could help you pay off your credit card faster (see the screenshot). You can also choose to make Fixed Monthly Payments instead of paying the minimum payment.

### Credit card interest calculator

The minimum payment on your credit card is usually either a percentage of the current balance (2% – 5%) or a minimum fixed dollar amount (like \$15.00), whichever is greater. The minimum payment can define as the interest plus a percentage of the current balance. Check the fine print on your credit card agreement to determine how your credit card company defines your minimum payment.

##### Interest-Only

This is the minimum possible payment that you could make to avoid having your balance increase. But, if you only only pay the interest month-to-month, you’ll never pay off the credit card. The basic calculation for the monthly interest-only payment is:

(Annual Rate / 12) * Balance

If your interest rate was 18%, then the monthly interest rate would be approximately 18% / 12 = 1.5%.

##### Percent of Balance

Credit cards are a type of revolving line of credit that don’t have a specific amortization period define. So, to ensure that each payment includes interest plus some portion of the principal, the minimum payment is defined as a percentage that is greater than the monthly interest rate. This percentage will usually be between 2% and 5%.

##### Interest plus Percent of Balance

Some credit cards may define the minimum payment as “X% of the balance plus interest” – especially cards where the interest rate is allowed to change. Defining the minimum payment like this ensures that the credit card payment will always cover interest plus X% of the principal balance.

In the credit card payment calculator, enter the X% in the “Min Payment % of Balance” field and then check the “Plus Interest” box.

##### Fixed Dollar Amount

When your balance gets low, the “Percent of Balance” calculations might result in a very small minimum payment. In theory you’d never actually finish paying off the balance. So, there is almost always a minimum fixed dollar amount, usually about \$15.00.

In the credit card calculator, you enter the \$15.00 minimum value in “Min Payment for Low Balance” field.

##### 0% Interest Period

Some companies offer 0% interest for a number of months to entice you to sign up for their new card. After the 0% introductory period, the interest rate rises to the normal high rate.

## How to calculate Credit Card Interest?

For credit cards, interest is usually accrued daily or based on the average daily balance, but most credit card calculators estimate the monthly interest by assuming that

(1) the balance is constant and

(2) the interest rate is the annual rate divided by 12.

This is a pretty good estimate, but probably won’t be exactly what you see on your monthly statement.

##### minimum payment on credit card vs. Fixed Payments

The credit card payment calculator lets you enter a Fixed Monthly Payment amount. If you do, that amount will override what you have entered in the Min Payment fields. If the fixed payment is the same as or greater than the first minimum payment, you will generally pay off the credit card much sooner and pay much less interest overall.

##### When Should I Pay only the Minimum Payment in credit card?

There may be extenuating circumstances where you might want to only make a minimum payment (such as lack of money).

There is also a case where it may be mathematically beneficial to pay the minimum. And that is … if you are using the snowball method to pay off multiple credit cards.

Using the snowball method, you can pay less overall interest and pay off debts faster if you pay off the credit card with the highest interest first and make only minimum payments on the other credit cards. This assumes that you are allocating a fixed total amount to paying off your debts so that everything left over after making the minimum payments on the other credit cards.

Our easy to use editable Excel templates and save your significant amount of time and effort. Here’s how to download and use one of our templates:

1. Download this free Excel Template: Once you’ve browsed through our collection of templates and find the one that best fits your needs. Once you’ve found the template you want, click on the download button.

2. Replace sample data with your actual data: Once the template is downloaded, open it in Excel. You’ll see that it is already set up with sample data. To start analyzing your own data, simply replace the sample data with your actual data.

3. Customize the template: Our templates are completely editable, which means you can customize them to fit your specific needs. For example, you can change the formatting, add or remove columns, or create new charts and graphs.

4. Use the Excel template: Once you’ve fed in your data and customized the template, you’re ready to start using it for data analysis. Use the various tools and features of Excel to analyze and visualize your data, and make informed business decisions.

5. Save and share: Once you’ve finished working on the template, save it to your computer and share it with other members of your team or stakeholders as needed.

Instruction :

All Excel templates and tools are sole property of xlsxtemplates.com. User can only download and use the excel templates for their Personal use only. All templates provided by XLSX templates are free and no payment is asked. However, you are not allowed to distribute or share in any other website for sole purpose of generating revenue from it.

You can also download and use our 1000 Best PowerPoint Presentation Templates and 500 Resume Samples from PPTXTemplates.com  Completely Free. All our templates are designed by Professionals

Credit card payment calculator Template

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