Calculating your Minimum Monthly Payment

This method of calculation could vary from card to card, but most card companies take 1% of your outstanding balance + any interest accrued during the billing period. For example:

You have an outstanding balance of $2000.00 and your company assessed you $3.35 of interest. You minimum monthly payment would be .01($2000.00) + $3.35= $23.35. This amount would be rounded up to the next dollar amount of $24.00. If your minimum amount is below $10.00, then some companies will require you pay a specified minimum amount. Again, this varies from company to company.

You try:

1. Outstanding Balance = $1500 Interest = $3.50

Minimum Monthly Payment = _________________

2. Outstanding Balance = $750 Interest = $1.25

Minimum Monthly Payment = _________________