Example $5,000 · 24% APR · ~2% minimum Run the calculator for your numbers
- Est. minimum
- ~$100/month
- Time to pay off
- ~22 years
- Total interest
- ~$5,500+
Tap calculate to replace this with your balance and APR.
Minimum Payment Calculator: See What Your Minimum Really Costs
You do not need to guess your minimum from your statement. Enter your balance and APR—we estimate your minimum payment and show how many years minimum-only payments can keep you in debt. Then compare what happens when you pay $50, $100, or $200 more.
📖 Before you calculate
What is a credit card minimum payment?
A minimum payment is the smallest amount your card issuer will accept each billing cycle to keep your account in good standing. It is not a recommended payoff plan—it is the floor. Pay it on time and you avoid late fees and penalty APR in most cases. Pay only the minimum for months or years and most of your money goes to interest, not your balance.
Issuers publish how they calculate minimums in your card agreement (sometimes called the Schumer box). Common US formulas include:
- Percentage of balance — often 1% to 3% of what you owe.
- Plus interest — some cards add that month's finance charge to the percentage.
- A flat floor — typically $25 to $40 when the percentage would be lower.
Example: $5,000 at 24% APR earns about $100 in interest the first month. A 2% of balance minimum is also ~$100—so zero dollars go to principal and the balance never shrinks in that simplified model. A 1% + interest minimum is ~$150 ($50 principal + $100 interest), which is why many real cards eventually pay down, but painfully slowly. That gap is the minimum payment trap—and why this calculator shows how your payment splits between interest and principal.
Our tool estimates your minimum from balance and APR using rules you can match to your issuer. For the full formula breakdown, read how minimum payments are calculated. When you are ready to pick a fixed payment above the minimum, use the credit card payoff calculator.
Estimate your minimum & payoff timeline
Enter balance and APR—we estimate your minimum and show payoff time, interest cost, and pay-more comparisons in one place.
Your estimated minimum and payoff results appear here after you calculate.
Minimum vs pay-more snapshot
Card 1 uses your estimated minimum; card 2 shows paying a bit more.
Why paying the minimum is costly — years lost, interest piled up, and what to do instead.
Example Same debt · +$50/month Pay $150 instead of $100
- Monthly payment
- $150/month
- Time to pay off
- ~5 years
- Interest saved
- Thousands vs minimum
Small bumps above the minimum change everything.
Model note: we hold the payment steady at your estimated minimum for comparison. Real minimums shrink as your balance falls. See minimum vs fixed payment.
🚨 The minimum trap
Why minimum payments keep you in debt for years
Credit card companies are not hiding the math—they are showing you a number designed to keep payments manageable this month. The minimum is often close to your monthly interest charge, especially at high APR. When interest and minimum are nearly equal, your balance barely moves.
Consider $3,000 at 22% APR. Estimated minimum ~$75. Interest alone ~$55. Only ~$20 hits principal. At that pace you are in debt for years and pay far more than $3,000 total. Bump to $125/month and the same balance can clear in under 3 years.
| Monthly payment | Approx. payoff time | Total interest |
|---|---|---|
| ~$100 (est. minimum) | 22 years | $5,500 |
| $150 | 5 years | $3,300 |
| $200 | 2.7 years | $1,700 |
| $300 | 1.6 years | $1,000 |
Planning around take-home pay? Check what you can actually afford with the hourly-to-salary after-tax calculator before you commit to a higher card payment. For balance-specific guides, see how to pay off $5,000 or debt payoff scenarios.
❓ FAQ
Minimum payment questions answered
How is the credit card minimum payment calculated?
Most issuers use the greater of a flat floor ($25–$40) or a percentage of balance (1%–3%), sometimes plus that month's interest. Pick the formula closest to your card in the calculator above, or read how minimums are calculated for issuer examples.
What happens if I only pay the minimum?
You stay current on the account, but payoff can take decades at high APR. Most of each payment covers interest. Read what happens if you only pay the minimum for a full walkthrough.
How long does it take to pay off a card with minimum payments?
It varies by balance and APR. $5,000 at 24% on an estimated ~$100 minimum can take 20+ years in a fixed-payment model. Enter your balance and APR in this calculator for your timeline.
Is paying the minimum bad for my credit score?
On-time minimums help payment history. High utilization hurts. Paying more than the minimum lowers your balance faster and can improve utilization over time.
How much more than the minimum should I pay?
Start with whatever covers interest plus meaningful principal—often $50 to $100 above the minimum. Lock a fixed amount in the payoff calculator and treat it like a bill.
Why does my minimum go down when my balance drops?
Minimums are tied to balance size. As you owe less, the percentage portion shrinks. That slows progress unless you pay a fixed amount each month. Compare strategies in minimum vs fixed payment.