Credit Card Minimum Payment

Minimum payments shrink as your balance falls, which is exactly why they stretch payoff for years.

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The minimum trap

Time to pay off
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Models the common issuer minimum: 1% of the balance plus that month's interest, with a dollar floor. Real terms vary. Illustrative.
About this calculator

Credit Card Minimum Payment

A credit card minimum payment calculator shows how long it takes to clear a balance paying only the minimum, and how much interest that costs, usually a sobering number that makes the case for paying more.

Why minimum payments stretch on for years

Card minimums are typically a small percentage of the balance (often around 1%) plus the month's interest. Because that percentage shrinks as the balance falls, the payment gets smaller right alongside it, so progress slows to a crawl. On a high-rate balance, paying only the minimum can take well over a decade and cost more in interest than the original purchases.

A fixed payment changes everything

The fastest escape is to stop letting the payment shrink: pick a fixed dollar amount above the current minimum and pay that every month regardless of the balance. Because the whole excess goes to principal, the balance falls faster and faster instead of slower and slower. Even a modest fixed amount above the minimum can cut years off the payoff and save a large share of the interest, try it in the calculator.

How to use it

  1. Enter your card balance and interest rate.
  2. See the payoff time and total interest paying only the minimum.
  3. Enter a higher fixed payment.
  4. Compare the time and interest you'd save.

Frequently asked questions

How long to pay off a credit card with minimum payments?

Often well over a decade on a high-rate balance, because the minimum shrinks as the balance falls. Enter your numbers above to see the exact time and interest cost.

How is a minimum payment calculated?

Usually a set percentage of the balance (commonly around 1%) plus that month's interest, with a small dollar floor. As the balance drops, so does the minimum.

What's the fastest way to pay off a card?

Pay a fixed amount well above the minimum every month, and avoid new charges. A steady payment sends more to principal and shortens the payoff dramatically.

See the exact formula and a worked example on our methodology page.

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