Credit Card Minimum Payment Calculator
Enter your balance and APR to see the true cost of minimum payments, next to what a fixed monthly payment would save.
Assumes no new purchases. Minimum payments shrink as the balance falls — that's what makes them so slow.
Why minimum payments take decades
Card minimums are usually 2–4% of your balance (or 1% plus the month’s interest), with a $25–$35 floor. Because the payment shrinks as the balance shrinks, most of each early payment is swallowed by interest and the payoff curve flattens into years:
Worked example
A $3,500 balance at 24.99% APR under the common “1% + interest” rule: the first minimum is $107.89, yet payoff takes about 16 years 9 months and roughly $6,154 of interest — nearly twice the original balance. A fixed $150/month clears the same debt in about 2 years 9 months for around $1,343 in interest. And under a pure 2%-of-balance rule the picture is worse still: at this APR, 2% of the balance is less than the monthly interest, so minimums alone never pay it off at all.
How to escape the minimum-payment trap
- Fix your payment at today’s minimum (or more) and never lower it. This one change converts the shrinking-payment trap into a normal amortizing loan.
- Round up aggressively. Every extra $50/month at 25% APR works far harder than $50 almost anywhere else.
- Consider a 0% balance transfer (typical 3–5% fee) or a fixed-rate consolidation loan if your credit allows — then keep the payment identical so the whole payment hits principal.
- Stop new charges on the card while paying down — this calculator (and your payoff date) assumes the balance isn’t being refilled.
Frequently asked questions
How is a credit card minimum payment calculated?
The two dominant formulas are a flat percent of the statement balance (2–4%) or 1% of the balance plus that month’s interest and fees, whichever way your issuer defines it — always subject to a dollar floor ($25–$35). Your cardholder agreement states the exact rule; pick the matching option in the calculator.
Does paying the minimum hurt my credit score?
Paying at least the minimum on time keeps the account current — no late marks. But the slowly-falling balance keeps your credit utilization high, which does weigh on scores. Payment history stays clean; utilization improves only as the balance actually drops.
Why did my minimum payment go up?
Common causes: the balance grew (new purchases or interest), a promotional APR expired, a variable APR rose with the prime rate, or a late fee was added. Since minimums are computed from the current balance and rate, any of those raises the figure.
Is it ever OK to pay just the minimum?
As a short-term bridge in a tight month, yes — it protects your credit standing. As a strategy, no: at typical APRs the interest cost is enormous. Even $20–$30 above the minimum, held constant, changes the trajectory dramatically.
Last reviewed: 2026-08-20 · Report an issue