Minimum Payment Calculator
Enter your balance and APR to see how long paying only the minimum really takes – and how much interest it costs. This minimum payment calculator uses the common one-percent-plus-interest rule and runs entirely in your browser, with nothing saved.
The true cost of minimum payments
How the minimum payment calculator works
Most card issuers set the minimum at a small percentage of your balance plus that month’s interest, with a fixed dollar floor. This minimum payment calculator recreates that rule: each month it charges interest, works out the required minimum, subtracts it, and repeats. Because the minimum shrinks as your balance falls, the payoff drags on for years and the interest piles up.
Estimates for general information only; not financial or tax advice. Your issuer’s exact minimum formula and floor may differ, so treat this as a close estimate.
A worked example
Start with a $5,000 balance at 24% APR. The first minimum - one percent of the balance plus interest - is about $150. It feels manageable, but almost two-thirds of that first payment is pure interest.
Paying only the shrinking minimum, the balance takes about 201 months - nearly 17 years - to clear, with roughly $8,442 in interest. You would pay about $13,442 in total for a $5,000 debt. That is the hidden price of minimum-only payments. Multiply that across several cards and minimum-only payments can quietly cost more than the original debt itself.
How to escape the minimum payment trap
The fix is to pay a fixed amount well above the minimum. Because the minimum keeps falling with the balance, sticking to it stretches repayment for years; a steady, larger payment attacks the principal and collapses the timeline. Even a modest fixed payment can turn 17 years into two or three.
The Consumer Financial Protection Bureau explains the three-year payoff figure many statements now show, and its guidance on acting fast when you cannot pay your cards is worth reading if the minimum is all you can manage. Contacting your issuer early often opens up hardship options.
To build a full payoff plan, grab the free Debt Payoff Spreadsheet or compare tools in our debt and loan calculators.
Frequently asked questions
How is the minimum payment calculated?
This tool uses a common rule: the greater of a fixed floor (often $25 to $35) or a small percentage of the balance plus the month’s interest. Your issuer’s exact method may vary but is usually similar.
Why does minimum-only take so long?
As your balance falls, the required minimum falls too, so you pay less each month and the payoff stretches out. Most of the early payments cover interest rather than principal.
Is paying the minimum bad for my credit?
Paying at least the minimum on time protects your payment history, but carrying a high balance keeps utilization high, which can weigh on your score. Paying more helps on both fronts.
What should I pay instead?
A fixed amount above the minimum - as much as your budget allows - dramatically shortens payoff. Try a fixed payment in our debt payoff or extra payment calculators to compare.
Does this include new purchases?
No. It assumes you stop charging and pay down the balance you enter. New purchases would reset the balance higher and extend the timeline.
Ready to break the cycle? See our debt and loan calculators or start with the debt payoff calculator.