In calculating the credit card, there is interest of credit card per year. Generally the interest range between 12-36 percent per year. If you want to calculate the interest per month, means the annual interest have to be divided by 12.
The calculation of the credit card bill also contained the minimum payment each month. Wheter calculation in a percentage, usually about 2 to 5 percent of our total bill per month or in the nominal terms, typically ranging from 10 to 30 dollars for the minimum payment each month.
Let us calculate the calculations of our credit card bill if we pay with the minimum payment.
Suppose we get info for our credit card with a minimum payment that is 2.5% or a minimum $ 20 .The credit card company will give the higher of the percentage or amount as minimum payment. Let us calculate if the total bill was $ 500 and we are planning to pay in installments with minumum payment each month.
Total bill $ 500
The minimum payout percentage = 2.5% x $ 500 = $ 12.5
Credit card company will choose $ 20 per month as a minimum payment.
What if our total bill was $ 5,000, with a minimum payment of 2.5% or a minimum of $ 20. The calculation would be:
The minimum payout percentage = 2.5% x $ 500 = $ 125
In comparison, the $ 125 is higher than $ 20, then the credit card company will choose $ 125 as the minimum payment each month.
Thus you can find out the minimum payment that you have to fullfil every month. The different of total bill will be the different options for the minimum payment.