Credit Card Minimum Payment Calculator
See this month’s credit card minimum payment and how long — and how costly — paying only the minimum really is.
How it works
Minimum = max(floor, balance × min%). Paid alone it shrinks every month as the balance falls, stretching payoff for years.
A credit card minimum is usually a small percentage of the balance (often around 2%), with a dollar floor such as $25. Because that percentage is recalculated on a shrinking balance, the payment keeps dropping — so most of it goes to interest and the balance barely moves. Paying a fixed amount instead of the ever-shrinking minimum clears the debt dramatically faster and for a fraction of the interest.
Worked example
On a $5,000 balance at 22% APR with a 2% minimum ($100 this month, $25 floor), paying only the minimum takes decades and costs far more than the balance itself. Freezing the payment at $100 a month instead pays it off in roughly 11–12 years — and paying more clears it faster still.
Frequently asked questions
Why do minimum payments take so long?
The minimum is a percentage of the balance, so as the balance shrinks the payment shrinks too. At high APRs, most of each minimum goes to interest, leaving almost nothing to reduce the principal — which is exactly how the debt is designed to linger.
How is the minimum payment calculated?
It varies by issuer, but a common formula is the greater of a fixed floor (often $25–$35) or a small percentage of the balance. Some cards instead charge the interest and fees plus 1% of the principal. This tool uses the percentage-of-balance model.
What should I pay instead?
As much as you can, and at minimum a fixed dollar amount that does not fall with the balance. Even holding the payment steady at today’s minimum, rather than letting it shrink, saves years and thousands in interest.
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This is an educational estimate, not financial or tax advice. Confirm figures with a professional.