Credit Card Minimum Payment Calculator
Find your credit card minimum payment and see the alarming true cost of paying only the minimum — in total interest and years it takes to clear the balance.
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Your minimum payment this month — paying only this takes much longer and costs far more
- 1
Percentage-based minimum
5,000 × 2% ÷ 100 = 100 - 2
Fixed floor
25The issuer charges whichever is greater. - 3
First minimum payment
max(100, 25) = 100
How does this calculator work?
Minimum payment = max(balance × min%, fixed floor). Because the minimum shrinks with the balance, paying only the minimum on a $5,000 balance at 20% APR takes roughly 22 years and costs ~$6,000 in interest on top of the original debt. Even a modest fixed payment above the minimum saves years and thousands of dollars.
Formula
How this is calculated
Credit card issuers set a minimum payment as the greater of a percentage of the outstanding balance (typically 1–3%) or a fixed floor amount (often $10–$25). Because the percentage applies to a shrinking balance, each successive minimum payment is a little less than the last — the card company is happy to keep you in debt as long as possible while your account stays current.
This calculator simulates the payoff month by month: it computes the interest accrued on the balance, determines that month's minimum payment by the formula above, deducts it, and repeats until the balance reaches zero. The result is often shocking — a $5,000 balance at 20% APR paying 2% of balance ($25 floor) takes roughly 22 years to clear and costs about $6,000 in interest on top of the original $5,000.
Values are editable estimates; actual minimums depend on your card agreement. The minimum percentage and fixed floor vary by issuer and can change. This calculator uses actual balance before interest for the percentage calculation — some issuers include accrued interest in the base amount, which changes results slightly. Always verify the exact formula in your card agreement.
Frequently asked questions
Most US issuers charge the greater of 1–3% of the outstanding balance or a fixed amount like $25. Some use (1% of balance + that month's interest). The exact formula is in your card agreement; values in this calculator are editable estimates.
Because the minimum payment shrinks as the balance falls, and early payments mostly cover interest. On a $5,000 balance at 20% APR, the first 2% minimum is $100 — but about $83 of that goes to interest, leaving only $17 off the principal.
Dramatically less time and interest. Switching from minimum (2%) to a fixed $200/month on a $5,000 balance at 20% APR reduces payoff from ~22 years to ~35 months and cuts total interest from ~$6,000 to ~$1,700.
Also known as
TG we-Calculate Editorial Team. (2026). Credit Card Minimum Payment Calculator [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/credit-card-minimum-payment-calculator
TG we-Calculate Editorial Team. "Credit Card Minimum Payment Calculator." TG we-Calculate. 2026. https://we-calculate.com/calculator/credit-card-minimum-payment-calculator.
TG we-Calculate Editorial Team, "Credit Card Minimum Payment Calculator," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/credit-card-minimum-payment-calculator
@misc{wecalculate_credit_card_minimum_payment_calculator, title = {Credit Card Minimum Payment Calculator}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/credit-card-minimum-payment-calculator}}, year = {2026}, note = {TG we-Calculate} }
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