1. What is Citibank's Minimum Payment?

Citibank's 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 2% of your balance or $25.

2. How Does the Calculator Work?

The calculator uses Citibank's minimum payment formula:

Where:

• \( P \) — Principal balance (USD)
• \( MP \) — Minimum payment (USD)

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

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 higher interest charges over time.

4. Using the Calculator

Tips: Enter your current credit card balance in USD. The calculator will show your required minimum payment.

5. Frequently Asked Questions (FAQ)

Q1: Why does Citibank use this formula?
A: This standard formula ensures the bank receives at least a minimum amount each month while giving customers flexibility.

Q2: Will my minimum payment change?
A: Yes, it changes with your balance. If your balance drops below $1,250, your minimum payment will be $25.

Q3: Is it bad to only pay the minimum?
A: While it keeps your account current, it leads to more interest charges. Always pay more than the minimum when possible.

Q4: Are there exceptions to this formula?
A: If your balance is very low (under $25), you'll pay the full balance. Special promotions may have different terms.

Q5: How does interest affect my payments?
A: Interest is added to your balance, which can increase future minimum payments if you don't pay in full.