# Calculate Your Daily Credit Card Expenditure!

“How to calculate your credit card expense?” is a common and confusing question among most credit card users. By understanding how a credit card’s expenditures calculation works, you can plan and manage your debts effectively. The core factor of any good debt management is understanding the payment calculation methods and how it can affect your debt situation.

There are many online credit card calculators available that can provide you with the exact amount of expenditure. So, the major disadvantage of these types of calculators is they don’t show the classification of expenditure. Thus, if you want to develop sound debt management, it is crucial to identify the different types and nature of expenditure before managing them.

## Process Of Calculating Credit Card Expenditure

### The Least Payment Amount

The first step is to identify the least amount that the credit card is eligible to pay. The amount typically depends on the bank balance of the user. The bank requires you to spend at least 3%of your total outstanding for being credit card eligible. The decision of minimum payment is dependent on the bank.

### The Interest Calculation

Even if you make payments on time, the debt balance doesn’t reduce accordingly. It is only possible if your credit card charges 0% interest and no additional charges. The payment you make include the charge like rate interest and other additional charges imposed by the issuer.

### The steps of calculating the interest on credit card –

• Get the full information of the interest rate on credit card offered by the issuer.
• Another critical thing to do is to calculate the annual interest rate instead of the monthly rate.
• Then you have to multiple the interest rate of each month with an outstanding balance.

### Payment Of Principal Amount

After resolving your issue to pay the interest, the next thing you should be concerned about is repayment of the principal amount of debt. By deducting your payments’ monthly interest, you easily figure out the exact amount of principal you have already paid for the month.

It is crucial to keep track of your monthly payments as any outstanding can accumulate, which led to an increase in next month’s payment. The best way to keep account of these payments is to manage a proper spreadsheet. Another effective way to pay off your loan faster is to pay more than the minimum credit card’s eligible amount.

### Calculation For Longer Period

It is easier to calculate payment and interest for one month, but if you have calculated it more than a month the difficulty level rises. The best way out of these kinds of situations is to manage spreadsheets and tables. The tables are similar to the authorization table for a home in which each row signifies each payment. Though the process could take time initially, you get accustomed to the tool and templates.

### Variety Of Credit Cards

Having basic knowledge about credit card eligibility and payments works. But different banks have various types of rules and features for their credit cards. With help from what you have learned about debt management, you can easily calculate your monthly debt payoffs.

Thus, with the proper debt management techniques or tools, you can calculate your credit card expenditure and plan for a better future.