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How to calculate your credit card monthly repayment

Calculate how much you need to pay each month to clear your credit card debt and meet your financial goal.

When you receive your credit card statement each month, you’ll see both the closing balance and a “minimum monthly repayment” amount. While the closing balance is everything you owe, the minimum repayment shows what you have to pay off the card by the due date in order to keep your account in good standing.

Only paying the minimum repayment will help you avoid late payment fees, but it could also take you years to pay off your credit card and it can lead to ongoing credit card debt, interest charges and other risks.

Use the calculator below to determine how long it will take you to pay off your debt based on how much you’re currently paying and how much you’d need to pay each month to meet your financial goal.

Credit card repayment and interest calculator

* Disclaimer: Whilst every effort has been made to ensure the accuracy of this calculator, the results should be used as an indication only. They are neither an offer nor a pre-approval for a credit card.

How is credit card interest calculated?

There are two basic forms of interest, simple and compound, and credit cards accrue compound interest. There are also two parts to a credit card balance, the principal balance and the interest charges. Simple interest is charged as a fixed percentage on only the principal balance, so as you pay it down, regardless of how much you pay, you will pay less interest in the subsequent period. This assumes you are not making any new purchases to add to the principal balance.

Compound interest is charged as a fixed percentage on both the principal balance and the existing interest charges, so as you pay it down, if you’re paying too little, you can end up paying more interest in the subsequent period. This is why it is critical to pay off as much of your statement balance as possible, to avoid paying interest on interest.

What is the minimum I need to pay on my credit card?

Your card issuer sets the minimum monthly repayment on your credit card. This amount varies between credit card issuers but is usually calculated as 1–3% (although it can sometimes can be up to 10%) of your closing balance, with a minimum dollar charge of around S$20 to S$50.

To give you an idea of these costs, here are the minimum monthly repayment requirements of some popular credit card issuers:

Every time you get a credit card statement, the minimum repayment amount will be shown in dollars. This means you won’t have to calculate the percentage owed if you carry a balance.

Using the calculator above, if you input the minimum repayment amount into the ‘Monthly payment’ field, it will tell you how long it will take to pay off your balance. You can then change your payment amount to work towards your goal payoff time, or enter your payoff goal and it will tell you how much to pay each month (assuming you are not making new purchases).

What will happen if I just make the minimum credit card repayment?

If you just make the minimum monthly payment, you’ll only pay off a small percentage of your credit card debt (leaving the majority of your balance to grow with interest). This means your credit card debt could cost you hundreds or thousands of dollars in interest, plus it could take years to pay back. If you continually carry a balance that takes up a large portion of your overall card limit, this can also negatively impact your credit score.

Instead of only paying the minimum repayment, you should always aim to either pay off your balance in full or try to clear as much of the debt you can each month to minimise your interest costs.

Maximising your repayment dollars

Let’s say you have a S$5,000 debt on a credit card with an interest rate of 15% p.a. and you want to work out the most efficient way to pay down the debt.

The minimum monthly payment on your latest credit card statement is S$100 (the greater of S$20 or 2% of the closing balance) but you calculate how much you can save if you start putting money aside and paying S$250 off your card each month.

Minimum monthly repaymentsHigher monthly repayments
Credit card debtS$5,000S$5,000
Interest rate15% p.a.15% p.a.
Monthly repayment amountthe greater of S$20 or 2% of the closing balanceS$250
Total time to pay off debt24 years 5 months2 years
Total interest paidS$7,245.78S$789.73
Total amount savedS$6,456.05

As you can see from the table, you can save a massive S$6,456.05 by making higher repayments and pay your debt off in two years. However, if you were to continue to only make the minimum required payment, it would take more than 24 years to get out of debt. This clearly demonstrates why you should always try to pay more than the minimum monthly payment if possible.

Frequently asked questions

Want to know more about calculating credit card payments or minimum payments? We have answered some of the most commonly asked questions below. You can also use the form below to get in touch with us if you have any other questions.

Compare credit cards

Name Product Reward Cashback Offer Annual Fee Min Income - Singaporean and PR
HSBC Revolution Credit Card
Earn up to 10X Reward points or 4 miles per $1 spent on qualifying purchases.
Receive up to 2.5% cashback for every dollar you spend.
Earn up to 10X rewards points (equivalent to 4 miles per dollar spent) when you charge online, dining and entertainment expenses to your card.
Citi Prestige Card
Deals and discounts in more than 90 countries. Also, get six complimentary golf games across Asia
Up to 20% cashback at selected merchants
Receive 120,000 ThankYou Points (48,000 Miles) when you pay the annual fee ($540) and spend $800 within two months. T&Cs apply. Valid until 31 March 2023.
HSBC Visa Platinum Credit Card
Earn 1 Reward point for every $1 on all spend.
Up to 5% cash rebates on groceries, dining and fuel with minimum monthly spend of at least $600.
$0 annual fee for the first 2 years and $192.60 thereafter
Receive up to $1,000 worth of cash rebate yearly.
Citi Cash Back+ Credit Card
Get up to 14% fuel discounts at Esso and Shell and 1.6% cash back on eligible retail purchases.
1.6% cash back on selected retail purchases
$0 annual fee for the first 1 year and $194.40 thereafter
Receive 10% cash back (up to $300 cash back) on up to $3,000 spend in the first 2 months. T&Cs apply. Valid until 31 March 2023.
HSBC Advance Credit Card
Receive up to $200 cashback when minimum spend requirements are met.
Enjoy up to 3.5% cashback on all purchases with no minimum spend
$0 annual fee for the first 1 year (permanently waived for HSBC Advance banking customers) and $192.60 thereafter
Enjoy up to 3.5% cashback on all purchases with no minimum spend.
Citi Cash Back Card
Get up to 20.88% fuel discounts at Esso and Shell, 6% cashback on dining and 8% cashback on groceries.
6% cash back on dining, 8% cashback on groceries and petrol transactions. 0.25% cashback on other retail purchases, capped at $80 for all transactions per statement month.
$0 annual fee for the first 1 year and $194.40 thereafter
Get a welcome gift of $300 cash back when you spend $800 in the first two months. T&Cs apply. Ends 31 March 2023.
American Express Singapore Airlines KrisFlyer Ascend Credit Card
For every $1 spent, earn 1.2 KrisFlyer miles on local purchases, 2 KrisFlyer miles on overseas spend in June and December, Singapore Airlines and KrisShop and 3.2 KrisFlyer miles on Grab.
Get 20,000 KrisFlyer miles upon annual fee payment and minimum spending of $3,000 within 30 days from card approval. Existing card members will receive 10,000 Krisflyer miles. Also, earn 3,600 KrisFlyer miles based on the $3,000 spend above (based on 1.2 KrisFlyer miles per $1 spent locally). T&Cs apply. Ends 3 April 2023.
American Express Platinum Credit Card
Up to 50% off your food bill for unlimited visits at hotels around Singapore
Get 30,000 Membership Rewards points upon payment of annual fee and minimum spending of S$3,000 within 30 days from card approval. Existing card members can receive 16,000 Membership Rewards points. Also, receive 3,750 Membership Rewards points from your base earn rate for the $3,000 spent. T&Cs apply. Ends 3 April 2023.
American Express True Cashback Card
Enjoy 1.5% cashback on all purchases with no minimum spend or cap.
Earn 1.5% cashback on all eligible spending with no minimum spend or cap
$0 annual fee for the first 1 year and $172.80 thereafter
Apply today and get a 3% cashback bonus when you spend $5,000 in the first six months.
Aspire Corporate Card
Enjoy exclusive perks and discounts with Aspire's extensive range of partners, redeemable at anytime
1% Cashback for qualified spend of above S$5,000. T&Cs apply
A corporate debit card for SMEs and Startups with no annual fee and low FX fees. Enjoy 1% cashback on marketing and SaaS spend. T&Cs apply.
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