MoneyLifeCalcAll calculators / Money
Credit card minimum payment
Your privacy: everything you enter stays on your own device. It's saved in your browser so it's still here next time, and we never collect or see it.your numbers stay on this device. We never see them. Backups · Privacy policy
See how long a credit card balance takes to pay off if you pay only the minimum, and how much a fixed payment saves.
Carrying balances on more than one card or loan? The Debt payoff planner shows the best order to pay them all off. Open the Debt payoff planner →
- First minimum payment$154.13
- Interest paid with minimums$8,824
- Total paid with minimums$13,824
- Paying $200 a month takes3 yr
- Interest with the fixed payment$2,135
- You would save$6,689 and 13 yr 11 mo
Assumes no new purchases and the same APR. The Credit CARD Act requires your statement to show how long minimum payments will take; compare it with this estimate.
How this calculator works
Card issuers usually set the minimum payment at about 1% of the balance plus that month's interest, or 2% to 3% of the balance, with a floor of around $25 to $35. Because the minimum shrinks as the balance shrinks, paying only the minimum can stretch a debt out for decades and cost more in interest than the original purchase. Paying a fixed amount each month, even a little more than the first minimum, cuts the time and interest dramatically.
A worked example
The example is a $5,000 balance at 24.99% APR, with the minimum set at 1% of the balance plus that month's interest and never less than $35. The first minimum payment is $154.13. Because the minimum shrinks as the balance shrinks, paying only the minimum takes 16 years and 11 months and costs about $8,824 in interest. You would pay $13,824 in total for $5,000 of purchases.
Now hold the payment steady. Paying a fixed $200 every month clears the card in 3 years with about $2,135 in interest, saving roughly $6,689 and almost 14 years. Even paying a fixed $155, about the same as the first minimum, finishes in 4 years and 7 months.
How to read your results
The top half of the results describes the minimum-payment path: the first payment, the total interest, and the total you would hand over. The bottom half describes the fixed-payment path and the difference between the two.
The lesson is in the comparison between the first minimum payment and the fixed amount. They are often close. The saving does not come from paying a lot more this month. It comes from refusing to let the payment drop as the balance falls.
Common mistakes to avoid
- Assuming the minimum is designed to pay off the card. It is designed to keep the account current. With the most common formula, only about 1% of the balance goes to principal each month.
- Picking the wrong minimum formula. Issuers differ. Your statement or cardholder agreement says how yours is set. With a 2% formula and a high APR, the minimum may not even cover the interest.
- Paying the minimum while still using the card. New purchases keep the balance from falling, and the payoff date never arrives.
Common questions
How is a credit card minimum payment calculated?
Most large issuers use about 1% of the balance plus the interest and fees for that month, with a floor of roughly $25 to $40. Some use a flat 2% or 3% of the balance. Your statement shows the exact method for your card.
Why does paying only the minimum take so long?
The minimum is a percentage of the balance, so it falls every month as the balance falls. Smaller payments mean slower progress, and at a high APR most of each payment is interest.
Does paying only the minimum hurt my credit score?
Paying at least the minimum on time keeps your payment history clean. But a balance that stays high relative to your credit limit can hold your score down, and the interest cost is the bigger problem.
Where can I see this on my own statement?
Under the Credit CARD Act of 2009, card statements must show how long it would take to pay off the balance with minimum payments and what you would need to pay to finish in three years.
Disclaimer: This calculator is for education and planning only and is not financial advice. Actual rates, fees, and terms vary by lender and your credit, so confirm the numbers with your lender before you sign anything.
What calculator should we build next?
Tell us what you wish you could figure out. We read every idea and add new calculators regularly.