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Q: Does my minimum monthly payment come from an actual mathematical formula, or does the credit card company just come up with it out of thin air? Is there a way I can calculate this number for myself so that I can budget ahead of time?
A: The answers to the questions posed above are no, they don’t just randomly assign a minimum monthly minimum payment figure, and yes, you can get a pretty fair estimate of what your monthly minimum payment will be. How minimum monthly payment amounts are calculated differs from card to card. You can learn more about the different methods in this article.
The easiest way to estimate your minimum monthly payment is to use the calculator on our sister site, CreditForums.com.