Fixed Vs Minimum Payment Credit Card Calculator

Fixed Vs Minimum Payment Credit Card Calculator Sign

This calculator will calculate credit card payoff comparisons between making declining minimum monthly payments and fixed monthly payments.

Unlike most credit card payoff calculators, this calculator will also calculate how many hours you will need to allocate to working to pay the interest charges on the credit card -- for both fixed and minimum payment methods.

Plus, the calculated result also includes an interest cost bar chart for a visual representation of the fixed versus minimum payment savings.

Note that if you would like to see how much your monthly payment would need to be in order to meet a designated payoff goal, please visit the Credit Card Monthly Payment Calculator.

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Fixed Vs Minimum Payment Credit Card Calculator

Calculate credit card payoff comparisons between making declining minimum monthly payments and fixed monthly payments.

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Selected Data Record:

A Data Record is a set of calculator entries that are stored in your web browser's Local Storage. If a Data Record is currently selected in the "Data" tab, this line will list the name you gave to that data record. If no data record is selected, or you have no entries stored for this calculator, the line will display "None".

DataData recordData recordSelected data record: None
Balance:Current balance:Current balance:Current balance:

Current balance:

Enter the current balance on your credit card. Enter as a dollar amount but without the dollar sign and any commas. If you have added any charges to your card since your last statement, be sure to include those as well.

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% rate:Percent rate:Annual interest rate :Annual interest rate percentage:

Annual interest rate:

Enter the annual interest rate you are being charged on the credit card. Enter as a percentage, but without the percent sign (for .1799 or 17.99%, enter 17.99).

%
Minimum pmt:Minimum payment:Current minimum payment amount:Current minimum payment amount:

Current minimum payment amount:

Enter the minimum payment amount for the current month. Enter as a dollar amount but without the dollar sign and any commas.

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Smallest pmt:Smallest payment:Smallest minimum payment allowed:Smallest minimum payment allowed:

Smallest minimum payment allowed:

Enter the lowest allowable minimum payment dollar amount. Enter as a dollar amount but without the dollar sign and any commas.

For example, if your credit card company states your payment will be 2% of the balance, or $15, whichever is greater, enter 15 in the field provided.

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Wage/hrHourly wageReal hourly wageReal hourly wage:

Real hourly wage:

Optional: If you want to compare how many hours you will need to allocate to work just to pay the interest charges on your credit card, enter your real hourly wage in the field provided. Enter as a dollar amount, but without the dollar sign and any commas.

Your real hourly wage (RHW) is the after-tax, after work-related expense wage earned per hour devoted to working. If you don't know your RHW, click the link in this row to open the real hourly wage calculator in a new window.

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Minimum Vs Fixed Payment
Tap the text for a description of each row result.
Compare# of
Pmts
# of
Pmts
Number
of
Payments
Number
of
Payments
Interest
Cost
Work Hrs
to Pay
Interest
Work Hrs
to Pay
Interest
Work Hours
to Pay
Interest
Work Hours
to Pay
Interest
Min pmt:Min pmt:Minimum payment:Minimum payment:

Minimum payment:

This row shows the number of payments and the total interest cost if you make only the declining minimum monthly payments on your credit card. If you included your real hourly wage in your entries the calculator will also show you how many hours you will need to work to pay the interest charges when making only the minimum monthly payments.

Fix pmt:Fix pmt:Fixed payment:Fixed payment:

Fixed payment:

This row shows the number of payments and the total interest cost if you fix the payments on your credit card. If you included your real hourly wage in your entries the calculator will also show you how many hours you will need to work to pay the interest charges when making fixed monthly payments.

Fix save:Fix save:Fixed pmt savings:Fixed payment savings:

Fixed payment savings:

This row shows the months and interest savings you will realize if you make fixed monthly payments instead of declining minimum monthly payments. If you included your real hourly wage in your entries the calculator will also show you how many work hours you will save when making fixed monthly payments.

If you would like to save the current entries to the secure online database, tap or click on the Data tab, select "New Data Record", give the data record a name, then tap or click the Save button. To save changes to previously saved entries, simply tap the Save button. Please select and "Clear" any data records you no longer need.

Help and Tools

Learn

What declining minimum payments are, how they are calculated, and why you shouldn't fall for them.

What is the Declining Minimum Payment Method?

The declining minimum payment method is what credit card companies use to calculate your monthly payments -- which is designed so that your payments get smaller as your balance-owed gets lower. The two most common formulas used to employ the method are explained below.

Minimum Percentage Formula

Typically these payments are calculated by multiplying the balance you owe by a small percentage, usually between 2% and 5%. If the percentage causes the payment to fall below the stated minimum dollar amount (usually $10 to $15), the minimum dollar amount is used.

For example, if you have a $2,000 balance on card carrying an 18% APR with a minimum payment percentage of 2%, and a minimum dollar amount of $15, then your minimum payment would be $40 (2000 x .02). You can calculate your own minimum payment here.

The future financial happiness killer is that your interest charge for the month would be $30 (0.18 APR ÷ 12 months x 2000), which means that only $10 of your $40 payment is going to reduce what you owe. Ouch!

1% Formula

More and more credit card companies are adopting this method, which calculates 1% of your balance and adds it to the current month's interest charges.

In this case, referring back to the earlier example, your minimum payment would be equal to $30 interest plus $20 (.01 x 2000) for a total payment of $50.

A Perpetual Windfall for Credit Card Companies

Regardless of which minimum payment formula they use, credit card companies make a fortune from luring their spendthrift customers into making only the minimum monthly payments on their revolving charge accounts -- which usually barely covers the current month's interest charges.

And because so little of your payments go toward paying down what you owe (the principal), these payments can easily last for 10, 20, even 30 years -- and cost you thousands of dollars in wasted interest charges.

And guess what? If you are a responsible borrower and always make your payments on time, the credit card companies reward you by asking you to pay exorbitantly high interest-rates to pay for all the irresponsible borrowers who file bankruptcy on their credit card balances.

Now doesn't that make you feel special?

Fix Your Payments and Save a Ton!

One of the easiest ways for you to save a fortune in interest charges is to turn your current minimum monthly payment into a fixed payment.

In other words, whatever your current minimum payment is, just continue to make that payment amount until your balance is paid off. Then force yourself to never carry a balance on your credit card ever again. Instead ...

Become Your Own Credit Card Company

Once you pay off your credit card, begin depositing the freed-up monthly payment amount into a savings account.

That way you can use a debit card to borrow from yourself and only be out 0.5%-2% interest earnings rather than paying 18% - 29.99% interest to the card companies.

4 Simple Steps to Paying the Most for Everything You Buy

If you are determined to pay the highest possible price for everything you buy, here are the 4 steps:

1. Put all of your purchases on credit cards.

2. Make only the minimum payments on your cards.

3. Make all payments after they are due to trigger the late fees.

4. Skip the first payment to jump your APR to the 29.99% maximum asap.

If you "play your cards right" you could easily increase the cost of a $100 item, to well over $500.

In turn, this will afford you the opportunity to work 5-times the hours to buy the same amount of stuff.

Don't laugh, millions of consumers are actually following these 4-steps! Please don't be them!!

Adjust Calculator Width:

Move the slider to left and right to adjust the calculator width. Note that the Help and Tools panel will be hidden when the calculator is too wide to fit both on the screen. Moving the slider to the left will bring the instructions and tools panel back into view.

Also note that some calculators will reformat to accommodate the screen size as you make the calculator wider or narrower. If the calculator is narrow, columns of entry rows will be converted to a vertical entry form, whereas a wider calculator will display columns of entry rows, and the entry fields will be smaller in size ... since they will not need to be "thumb friendly".

Show/Hide Popup Keypads:

Select Show or Hide to show or hide the popup keypad icons located next to numeric entry fields. These are generally only needed for mobile devices that don't have decimal points in their numeric keypads. So if you are on a desktop, you may find the calculator to be more user-friendly and less cluttered without them.

Stick/Unstick Tools:

Select Stick or Unstick to stick or unstick the help and tools panel. Selecting "Stick" will keep the panel in view while scrolling the calculator vertically. If you find that annoying, select "Unstick" to keep the panel in a stationary position.

If the tools panel becomes "Unstuck" on its own, try clicking "Unstick" and then "Stick" to re-stick the panel.