Budgeting & Debt
Minimum payment
The card applies whichever of the two rules gives the larger payment.
The Formula
Minimum = max(Balance x Percent, Flat)
The card applies whichever of the two rules gives the larger payment.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| B | Balance | currency | Statement balance on the card. |
| p | Minimum percent | rate | Percentage the issuer applies. |
| F | Flat minimum | currency | Floor the issuer applies. |
What Each Symbol Means
Bcurrency
Balance
Statement balance on the card.
prate
Minimum percent
Percentage the issuer applies.
Fcurrency
Flat minimum
Floor the issuer applies.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate minimum payments page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Minimum Payments, filed under Finance. Every number the guide produces comes from substituting into this one line.