Credit Card Minimum Payment Calculator
From balance, minimum-payment percentage, APR and floor, compute the required minimum payment (two common methods).
Input Data
Results
At a glance:Two common HK methods: (1) Percentage only = balance x minPct, not below a flat floor (e.g. HK$50); (2) Percentage + interest + fees = balance x minPct + current interest (balance x APR/12) + fees. Example: 50,000 at 2% min, APR 30% → interest 1,250; method (2) = 1,000 + 1,250 = 2,250, of which only ~1,000 repays principal. Method (2) usually higher. WARNING: actual method/floor/fees follow issuer terms; paying only minimum traps you in long debt. Education, not advice.
Formula
Current interest = balance × APR ÷ 12.
Method 1 (percentage only): min payment = max(balance × pct%, floor).
Method 2 (pct + interest + fees): min payment = max(balance × pct% + current interest + fees, floor).
$$$I = Balance\\times\\dfrac{APR\\%}{12}$$$How to Use
- Enter the balance, minimum-payment %, APR and floor.
- Optionally enter a fee for the percentage+interest+fees method.
- View the minimum payment, current interest and principal repaid.
FAQ
What are the two common minimum-payment methods in Hong Kong?
Method (1) Percentage only: balance x minPct, but not below a flat floor (e.g. HK$50). Method (2) Percentage + interest + fees: balance x minPct plus the current month's interest and any fees. Issuers choose which; method (2) usually yields a higher payment.
Why does paying only the minimum barely reduce the balance?
Because with a high balance and high APR, the current interest can be a large slice of the minimum payment. Example: HK$50,000 at 30% APR, the monthly interest alone is HK$1,250; if the minimum is HK$2,250, only ~HK$1,000 actually repays principal. The balance lingers for years.
What is the flat floor?
When balance x minPct falls below a set amount (commonly HK$50), the issuer charges that floor instead, so small balances don't yield an unrealistically tiny minimum. It protects the issuer from minuscule repayments.
How high is a Hong Kong credit card APR?
HK credit-card revolving APRs commonly exceed 30%; the HKMA example uses about 2.5% per month (~35% effective annual). The high APR is exactly why minimum payments mostly cover interest.
Should I ever rely on the minimum payment?
Only as a short-term emergency to avoid late fees. Long term, paying only the minimum drags debt for years with interest multiple times the principal. Best to pay as much as possible, ideally in full to use the interest-free period, or move the balance to a lower-rate loan / 0% balance transfer. Check your issuer's exact terms.
Related Tools
References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.