 TITLE: How Is Your Credit Card Minimum Payment Calculated? CONTENT: What Factors Affect the Minimum Payment Calculation?\n----------------------------------------------------\nMinimum payment amounts are almost always calculated based on your interest rate and your monthly balance. In some situations—like when your account balance is under a certain amount—you may be charged a fixed amount, such as $25 or $35. The one exception to this is if your total balance is smaller than the fixed minimum payment amount, in which case you will be asked to pay your full balance.\nFor cardholders whose balances are above a certain threshold, the minimum payment may be calculated using several methods: either a flat percentage of your entire balance or a percentage plus the cost of interest and fees. Depending on the card issuer and your agreement, either of these methods might be used to calculate your minimum payment.\nIf your card issuer charges a flat percentage, your minimum payment could be anywhere from 2% to 4% of your total balance. In this case, the interest and any fees will be deducted from the total percentage calculated. If they use the alternative method, you'll pay a lower flat percentage—usually around 1%—but you'll also pay the applicable interest and fees for that period. END