How it is calculated
Each month, until the balance reaches zero:
- Interest = balance × annual rate ÷ 12
- Balance = balance + interest − payment
The calculator runs this twice: once with your fixed payment and once paying only the minimum, which is 5% of the balance or RM50, whichever is higher. The headline is the interest you save with the fixed payment. Both assume no new spending.
BNM caps credit card interest at 15%, 17% or 18% a year depending on your repayment record, with cash advances capped at 18%. A late payment charge is the lower of 1% of the outstanding balance or RM100. To see how long a single payment plan takes, use the credit card payoff calculator.
Worked example
Balance RM3,000 at 18% a year:
- One month’s interest: RM3,000 × 18% ÷ 12 = RM45
- Paying RM200 a month clears it in 18 months with RM424.15 interest.
- Paying only the minimum takes 55 months with RM1,036.70 interest.
- The fixed payment saves RM612.55.
BNM’s own example for the same balance shows about 1 year 5 months and RM424 for RM200 a month, and 4 years 7 months for the minimum.
Why your number may differ
Banks may calculate interest on daily balances and charge interest from the transaction date once you carry a balance. They may round differently and may set a different minimum. New purchases, fees, instalment plans and late charges are not included. This is an estimate only.