HisabCalc › Banking & money

Credit Card Minimum Payment and Interest Calculator

Works out the minimum amount due on a credit card from the outstanding balance and the bank's percentage rule, and shows how much of it actually reduces the debt.

Enter your numbers

Outstanding balance (taka)

Example: 45250

Minimum payment percent

Example: 5

Minimum floor amount (taka)

Example: 500

Annual interest rate percent

Example: 24

Result

Currency

Figures are computed on your device; nothing is sent anywhere.

Formula

percentPayment = outstanding * minimumPercent/100; minimumDue = max(percentPayment, floorAmount); monthlyInterest = outstanding * annualInterestRate/100/12; principalReduction = minimumDue - monthlyInterest

How the calculation works

Banks set the minimum due as a percentage of the outstanding balance, but they also apply a floor so that very small balances still attract a meaningful payment.

Interest for the month is calculated on the whole outstanding balance at the annual rate divided by twelve, and that interest is satisfied before any principal is touched.

Subtracting the monthly interest from the minimum due leaves the principal reduction, which explains why paying only the minimum keeps a card balance alive for years.

Common mistakes

Assuming the minimum payment clears the month's spending, when in fact a fresh purchase plus interest can push the balance back up immediately.
Reading the floor amount as the usual minimum, when the percentage almost always produces a larger figure on a normal balance.

When to use it

Use it to see exactly how little of a minimum payment goes to the principal before deciding to pay more.
Do not treat it as a repayment plan, since a card cleared at the minimum alone can take decades and cost far more in interest.

Worked example

On 45250 taka outstanding at a 5 percent minimum with a 500 taka floor and 24 percent annual interest, the minimum due is 2262.5, interest is 905 and only 1357.5 reduces the principal.

Minimum payment due 2,262.50

Monthly interest (BDT) 905.00

Principal reduction 1,357.50

Common questions

Why does the minimum payment barely reduce my debt?

Because the monthly interest is taken out of the payment first, and only what is left over goes towards the principal, which is often a small fraction of the balance.

Last updated: 2026-10-04