Debt & Credit
Credit Card Minimum Payment Calculator
Discover the true cost of only making minimum payments — how many years you'll be paying and how much total interest you'll hand to the credit card company.
Minimum Payment Method
Most cards use 1–3%.
🔒 All calculations happen instantly in your browser. No data is sent to any server.
How the calculation works
Most credit card minimum payments = Max(% of Balance, Floor Amount)
Each month: Monthly Interest = Balance × (APR ÷ 12); New Balance = Balance + Interest − Minimum Payment
Because minimum payments shrink as the balance shrinks, the payoff period is very long — the balance declines slowly and interest consumes most of each payment.
Example: $5,000 at 22.99% APR · 2% minimum (floor $25)
First min = $100 → as balance drops, minimums shrink → payoff takes 27+ years, total interest exceeds $5,500
Frequently Asked Questions
- Minimum payments are calculated as a small percentage of the current balance. As the balance shrinks, so does the minimum — but because the balance shrinks slowly (most of each payment goes to interest), it can take decades to reach zero.
- Most issuers charge the greater of: 1–3% of the current balance, or a flat minimum (usually $25–$35), or the interest charge plus $1. The exact formula varies by card — check your cardmember agreement.
- Use the Credit Card Payoff Calculator with your balance and APR, then trial different payment amounts until payoff time = 36 months. For a $5,000 balance at 21% APR, about $180/month pays it off in 3 years.
- Temporarily — during genuine financial hardship where cash flow is critical. Long-term, minimums are extremely costly and should be increased as soon as possible. Even an extra $25–50/month makes a significant difference.
- A 0% promotional balance transfer eliminates the interest component, so minimum payments go almost entirely to principal — dramatically accelerating payoff during the promo period. Always pay enough to clear the balance before the promo ends.