Analysis of Minimum Credit Card Payments

New credit card regulations in the U.S. will take effect on July 1st, 2010. Basically, credit card issuers must require higher minimum payments to shorten the customer's payback time when the customer elects to make only the minimum payment each month. This Demonstration computes a payment schedule for given credit card loan parameters and provides a comparison of the payback times for a set of different minimum payment amounts.


  • [Snapshot]
  • [Snapshot]
  • [Snapshot]


To ensure the credit card loan can be repaid at some time, the minimum payment switches from the minimum payment percentage (applied to the outstanding balance) to a fixed minimum payment amount, when this percentage-based minimum payment is lower than the minimum payment amount specified by the user.
Principal is the original outstanding loan amount. APR is the annual percentage rate that the credit card company charges the customer. Minimum percent is the percentage of the outstanding balance that is required to be repaid at a minimum, as long as it is still larger than the minimum payment amount. Minimum payment is the (fixed) minimum payment amount to be repaid when the percentage-based minimum payment becomes lower.
    • Share:

Embed Interactive Demonstration New!

Just copy and paste this snippet of JavaScript code into your website or blog to put the live Demonstration on your site. More details »

Files require Wolfram CDF Player or Mathematica.

Mathematica »
The #1 tool for creating Demonstrations
and anything technical.
Wolfram|Alpha »
Explore anything with the first
computational knowledge engine.
MathWorld »
The web's most extensive
mathematics resource.
Course Assistant Apps »
An app for every course—
right in the palm of your hand.
Wolfram Blog »
Read our views on math,
science, and technology.
Computable Document Format »
The format that makes Demonstrations
(and any information) easy to share and
interact with.
STEM Initiative »
Programs & resources for
educators, schools & students.
Computerbasedmath.org »
Join the initiative for modernizing
math education.
Step-by-Step Solutions »
Walk through homework problems one step at a time, with hints to help along the way.
Wolfram Problem Generator »
Unlimited random practice problems and answers with built-in step-by-step solutions. Practice online or make a printable study sheet.
Wolfram Language »
Knowledge-based programming for everyone.
Powered by Wolfram Mathematica © 2017 Wolfram Demonstrations Project & Contributors  |  Terms of Use  |  Privacy Policy  |  RSS Give us your feedback
Note: To run this Demonstration you need Mathematica 7+ or the free Mathematica Player 7EX
Download or upgrade to Mathematica Player 7EX
I already have Mathematica Player or Mathematica 7+