how to calculate outstanding balance on credit card

Step 2: Divide your current APR by 12 (for the twelve months of the year) to find your monthly periodic rate. Let's say you have two credit cards, each with a $10,000 limit. Calculate the total amount you'd have to pay in the end. He has a BBA in Industrial Management from the University of Texas at Austin. There will be a section below the interest and fees tables that says something like: "How we will calculate your balance. Use our credit utilization calculator to see where you stand. If you've ever taken out a student loan or opened a credit card, you've probably gotten a phone call, letter or email about the outstanding balance on your account. Start by figuring out the minimum payment required by your credit card company. You still owe the credit card issuer $3000. Calculate his DPR using the equation above: DPR = 0.15 365 = 0.00041 During the first 15 days of the June billing cycle, there was a balance of $500. The Monthly flat rate you provided is invalid. Once the debt is categorized you can determine which category you will pay off first. This article was co-authored by Michael R. Lewis. the "Apply Now" button, you can review the credit card terms and conditions on the issuer's web site. As you use your credit card during a statement cycle, you add to the outstanding balance. What is Total Amount Due and how it is calculated? Bear in mind that the statement balance remains the same until the credit card issuer sends the next monthly statement. Method 1: Percent of the Balance + Finance Charge Some issuers calculate the minimum payment as a percentage of the balance at the end of the billing cycle, plus a monthly finance charge. Others suggest lower amounts, like 25 percent or even 10 percent. Keep in mind that the statement balance remains the same until the credit card issuer sends the next monthly statement. 4. Last Updated: March 29, 2019 A is the total outstanding amount. A principal balance is the amount of loan a person gets at the beginning, excluding interest, while an outstanding balance is the amount a person is yet to pay. An outstanding balance is a total amount you owe (which is sometimes the same as your remaining balance). You get $1,350. Suffice it to say it's important you take a moment to understand just how interest works. This article was co-authored by Michael R. Lewis. the amount you intend to owe. You dont have $5000 to pay off that entire outstanding balance but you can pay $2000. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/9\/9d\/Calculate-the-Finance-Charge-on-a-Credit-Card-Balance-Step-1-Version-2.jpg\/v4-460px-Calculate-the-Finance-Charge-on-a-Credit-Card-Balance-Step-1-Version-2.jpg","bigUrl":"\/images\/thumb\/9\/9d\/Calculate-the-Finance-Charge-on-a-Credit-Card-Balance-Step-1-Version-2.jpg\/aid1117640-v4-728px-Calculate-the-Finance-Charge-on-a-Credit-Card-Balance-Step-1-Version-2.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"