Credit Card Minimum Payment Calculator
See how long it takes to pay off your credit card with minimum payments — and how much it will actually cost you.
Credit Card Details
Minimum Payment Method
Check your credit card statement for the method
Typically 1-3% of balance
Minimum if percentage is lower
Compare: Fixed Monthly Payment
See how much faster you could pay off your card with a fixed payment instead of declining minimums.
Enter your credit card details
to see the true cost of minimum payments
The Minimum Payment Trap
Paying only the minimum will take -- to pay off and cost you -- in interest.
Minimum Payments Only
The expensive path
Fixed Payment of $200/mo
The smart path
By paying a fixed amount instead of minimums, you would save:
--
in interest
--
sooner payoff
Payment Breakdown: Where Your Money Goes
How Minimum Payments Decline Over Time
As your balance decreases, so does your minimum payment — keeping you in debt longer.
| Month | Balance | Min Payment | Interest | Principal |
|---|
The Minimum Payment Trap
Credit card companies design minimum payments to keep you in debt as long as possible. A 2% minimum on a $5,000 balance at 23% APR could take over 20 years to pay off — costing you more in interest than the original balance.
How to Use
- 1 Enter your current credit card balance.
- 2 Enter your APR (find it on your statement).
- 3 Select how your minimum payment is calculated.
- 4 See how much you could save with fixed payments.
FAQ
How is my minimum payment calculated?
Most cards use a percentage of your balance (typically 1-3%), with a minimum floor ($25-35). Some cards add interest charges on top. Check your statement's "Minimum Payment Warning" box for details.
Why does paying minimums take so long?
When you pay the minimum, most goes to interest. Only a small portion reduces your balance. As your balance shrinks, the minimum drops too — so you're always paying just a tiny bit over interest. It's a debt treadmill.
What's the best strategy to pay off my card?
Pay a fixed amount each month — at least double the minimum. Even better: pay the current minimum and keep paying that same amount even as the required minimum drops. This accelerates payoff dramatically.
Should I pay off my card or invest?
Pay off your credit card first. At 20%+ APR, paying down your card is like getting a guaranteed 20%+ return. No investment reliably beats that. Once you're debt-free, invest aggressively.
Does this affect my credit score?
Paying minimums keeps your account in good standing, but high balances hurt your credit utilization ratio. Paying more than the minimum reduces your balance faster, improving your utilization and score.
Calculator Limitations
This calculator assumes no new charges, a constant APR, and regular payments. Actual results may vary based on billing cycles, variable rates, and payment timing.
