How to calculate overpayments
Posted: Wed Feb 19, 2025 3:25 am
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.
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.