How is the minimum payment calculated?

Most card issuers calculate minimums as the greater of (a) a percentage of the current balance (typically 1–3%) or (b) a fixed floor amount (usually $25–$35). As your balance drops, so does the minimum — which is why paying only minimums drags out repayment for years.

Why does it take so long to pay off using minimum payments?

Because minimum payments shrink as your balance shrinks. Early on, most of each payment covers interest, leaving very little to reduce the principal. As the balance falls, the minimum payment also falls, slowing progress even further.

What is a realistic minimum payment percentage?

Common ranges are 1% to 3% of the balance. Many US cards use 2% or 1% + interest + fees. Check your card agreement for the exact formula. A lower percentage means a smaller minimum — and a much longer payoff.

What does the fixed payment comparison show?

It runs a side-by-side calculation using your chosen fixed monthly payment instead of the shrinking minimum. This shows exactly how many months and dollars you save by keeping your payment constant rather than letting it drop with the balance.

Does this include new purchases?

No. This calculator assumes no new charges are added to the card. It models the payoff of your current balance only.

Minimum Payment Calculator

Name: Minimum Payment Calculator
Availability: InStock
Author: Nham Vu

Enter your credit card balance, APR, and minimum payment rules to see exactly how long it takes and how much interest you pay making only minimums.

Card Details

Current Balance

Annual Interest Rate (APR)

Minimum Payment Rule

Minimum % of Balance (e.g., 2%)

Minimum Floor (minimum $ amount)

Fixed Payment to Compare (optional)

Currency Symbol

Enter your card details on the left, then click Calculate.

Minimum Payment Summary

Minimums only

Months to Pay Off

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Total Interest

—

Total Paid

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First Min. Payment

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Month	Min. Payment	Principal	Interest	Balance

Summary

Enter your credit card balance, APR, and minimum payment rules to see exactly how long it takes and how much interest you pay making only minimums.

How it works

Each month the calculator applies the minimum payment rule (percentage of balance or fixed floor) to the current balance. The interest for that month is subtracted first; the remainder reduces the principal. Because the minimum shrinks as the balance falls, payoff stretches out dramatically. A comparison column using a fixed payment shows how much time and money a steady payment saves.

Use cases

A cardholder with a $5,000 balance who wants to understand why it takes decades to pay off paying only minimums.
Someone comparing the cost of minimum payments versus paying a fixed amount each month.
A financial counselor illustrating the "minimum payment trap" to clients with revolving credit card debt.
Anyone who received a credit card statement with only a minimum payment due and wants to understand the real cost.

Frequently Asked Questions

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Last updated: 2026-05-23 · Reviewed by Nham Vu