Most banks calculate minimum credit card payments by taking a simple percentage of the total balance on the card, so finding the amount due means simply looking up what percentage is used to calculate your minimum payment in your credit card contract and plugging it into the calculator.

Punch in your current balance on your calculator.

Press the multiplication button.

Press the "." key, since percentages are always decimal values.

Type in your minimum payment percentage using at least two digits. For example, 5 per cent would be:

0.05

On the other hand, 10 per cent would be:

0.10

Press the equals (=) sign. This will be your minimum payment.

#### Tip

Your creditor may instead use a "interest + 1 per cent" minimum payment calculation. To find this, you will need to work a little harder. First, find your interest for the month by entering your balance times your annual interest rate. Use the Annual Percentage Yield in your credit contract. Remember to put your annual interest rate inside a decimal. An example would be: 1000 (balance) x 0.22 (22 per cent interest) = £143 Now, find how much of that interest become due this month by dividing by 12. With this example, you would owe £11.90 in interest. Go through the steps above, using "0.01" (1 per cent) in step 4, but add the interest to your result to get your total minimum payment.

#### Warning

No discussion on minimum payments is complete without pointing out that making only minimum payments costs far more in interest over the long run than paying the credit card off early.

#### Tips and warnings

- Your creditor may instead use a "interest + 1 per cent" minimum payment calculation. To find this, you will need to work a little harder. First, find your interest for the month by entering your balance times your annual interest rate. Use the Annual Percentage Yield in your credit contract. Remember to put your annual interest rate inside a decimal. An example would be:
- 1000 (balance) x 0.22 (22 per cent interest) = £143
- Now, find how much of that interest become due this month by dividing by 12. With this example, you would owe £11.90 in interest.
- Go through the steps above, using "0.01" (1 per cent) in step 4, but add the interest to your result to get your total minimum payment.
- No discussion on minimum payments is complete without pointing out that making only minimum payments costs far more in interest over the long run than paying the credit card off early.