1. What is the Capital One Minimum Payment?

The Capital One credit card minimum payment is the lowest amount you must pay each month to keep your account in good standing. It's calculated as the greater of $25 or 2% of your principal balance.

2. How Does the Calculator Work?

The calculator uses the Capital One minimum payment formula:

Where:

• \( MP \) — Minimum payment (USD)
• \( P \) — Principal balance (USD)
• 2% — Percentage of balance
• $25 — Minimum fixed amount

Explanation: The calculation ensures you pay at least $25 or 2% of your balance, whichever is greater.

3. Importance of Minimum Payment Calculation

Details: Understanding your minimum payment helps with budgeting and avoiding late fees, though paying only the minimum will result in paying more interest over time.

4. Using the Calculator

Tips: Enter your current principal balance in USD. The calculator will determine your minimum payment based on Capital One's standard formula.

5. Frequently Asked Questions (FAQ)

Q1: Is the minimum payment always 2% of my balance?
A: No, it's the greater of 2% of your balance or $25 (whichever is higher).

Q2: What if my balance is less than $25?
A: You'll pay the full balance as your minimum payment.

Q3: Does making only minimum payments affect my credit score?
A: While it keeps your account in good standing, high utilization (balance vs limit) may lower your score.

Q4: Are there exceptions to this calculation?
A: Some special accounts or promotional balances may have different terms - check your card agreement.

Q5: How can I reduce interest payments?
A: Pay more than the minimum whenever possible to reduce principal faster and save on interest.