How to calculate overpayments

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monira444
Posts: 491
Joined: Sat Dec 28, 2024 4:36 am

How to calculate overpayments

Post by monira444 »

Since overpayments directly depend on the amount of debt, you can accurately calculate them only for a specific billing period. Usually, overpayments are calculated in one of two ways:

at the daily interest rate;

at an annual rate.


Let's look at both methods using one example. Conditions:

amount of debt - 25,000 ₽;

the grace period has ended;

the credit card was used only to pay for singapore mobile database purchases (there were no transfers or cash withdrawals);

Credit card interest rate is 32.85%.


Method #1. Calculations at the daily rate
Overpayments are calculated as follows:

Step 1. Calculate the daily rate. In our example, you need to divide 32.85% by 365 (the number of days in a year). You get 0.09%.

Step 2. Calculate the amount of interest per day - that is, 0.09% of 25,000 ₽. It turns out to be 22.5 ₽.

Step 3. Calculate the amount of overpayments for the billing period. In the example, you need to multiply 22.5 ₽ by 30 days. The total amount of overpayments is 675 ₽.


This method is not always accurate: when you calculate the daily rate, you often get irrational numbers. This means that your amount may differ from the one the bank sets: it all depends on how exactly you round.

Method No. 2. Calculation at an annual rate
This method is a little easier to calculate, since you don't have to calculate small percentage values. To calculate overpayments, follow the step-by-step instructions:

Step 1. Calculate the annual overpayments based on the current amount of debt. In our example, we need to calculate 32.85% of ₽25,000. This comes out to ₽8,200.

Step 2. Divide the resulting amount by 365 to find out the overpayment per day. It turns out to be 22.5 ₽.

Multiply this number by 30 to get the amount of overpayments for the billing period. As with the first method, we arrive at a sum of 675 ₽.


When you calculate overpayments this way, you may also get irrational numbers. This means that the final amount may differ slightly from what the bank will charge.

Important: the resulting 675 ₽ is the amount of interest that accrues at the end of the billing period, not the minimum payment amount. The payment is calculated taking into account part of the principal debt.
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