Credit Card Payment Calculator
Calculate monthly payments based on payback term, payoff date, or minimum payment requirements
What are you looking for?
Specifications
Your outstanding unpaid balance
Next payment due date
Annual percentage rate on your credit card
Years
Months
Minimum Payment & Compound Settings
Monthly Payment Details
Enter your credit card balance and APR to calculate payment details
How Credit Card Payments Work
Example: $1,000 Balance at 18% APR
Monthly Interest Rate: 18% ÷ 12 = 1.5%
Monthly Interest Charge: $1,000 × 1.5% = $15
Minimum Payment (3%): $1,000 × 3% = $30
Principal Payment: $30 - $15 = $15
New Balance: $1,000 - $15 = $985
Average Daily Balance Method
Most credit cards use the Average Daily Balance (ADB) method:
Formula: Monthly Interest = DPR × ADB × Days in Cycle
DPR: Daily Periodic Rate = APR ÷ 365
Benefit: Paying earlier in the month reduces interest
Payment Strategy Tips
Pay More Than Minimum
Reduce principal faster to save on interest charges
Set Target Dates
Fixed payoff dates create accountability and savings goals
Pay Early in Cycle
Reduce average daily balance for lower interest charges
Avoid Minimum Trap
Minimum payments mostly cover interest, not principal
Interest Calculation Methods
Average Daily Balance
Most common method - tracks daily balances
Previous Balance
Based only on starting balance
Adjusted Balance
Subtracts payments before calculating interest
How to Calculate Credit Card Payments
Payment Calculation Methods
Our calculator offers three approaches to determine your optimal payment strategy based on your financial goals and timeline.
Key Components
Principal
Portion of payment that reduces your balance
Interest
Cost of borrowing, calculated on remaining balance
Minimum Payment
Required payment to avoid penalties
Payment Strategies
- ✓Fixed Term: Set a specific payoff period for predictable payments
- ✓Target Date: Choose a debt-free date for motivation
- ✓Minimum Payments: Understand the long-term cost
Interest Calculation
Average Daily Balance Formula:
Monthly Interest = (APR ÷ 365) × Average Daily Balance × Days in Cycle
Calculate Interest
Determine monthly interest based on balance and APR
Determine Payment
Set payment amount based on your chosen strategy
Reduce Principal
Apply payment to interest first, then principal