Credit Card Minimum Payment Calculator
Enter your balance, APR, and minimum payment formula — the payoff time and interest cost update as you type, and the link always carries your numbers.
How this calculator works
Each month, interest accrues on the balance, then a minimum payment is due — whichever is larger: a percentage of the current balance, or a flat-dollar floor. Because the balance shrinks a little each month, the percentage-based minimum shrinks with it, so this calculator simulates the payoff month by month rather than using a single formula. It also runs a second simulation using a fixed payment equal to today's first minimum, held constant instead of shrinking, so you can see exactly how much time and interest a fixed payment saves. If the minimum ever fails to exceed that month's interest, the balance can never reach zero — the calculator flags this instead of pretending otherwise, and caps any simulation at 600 months (50 years).
Worked example
At the calculator's defaults — a $5,000 balance at 24% APR with a 2% minimum — the first month's interest is exactly $5,000 × 24% ÷ 12 = $100.00, and 2% of $5,000 is also exactly $100.00. The minimum only covers the interest, so the balance never actually falls — a real edge case some cards can produce, and exactly why this tool warns instead of silently showing a payoff date. Adjust the numbers slightly and the picture changes fast: a $2,500 balance at 22% APR with a 3% minimum pays off in 117 months (about 9 years 9 months) under the shrinking minimum, costing $2,748.12 in interest. Hold that first month's minimum — $75 — fixed instead, and it's paid off in 52 months (4 years 4 months) for $1,399.03 in interest: less than half the time, for about $1,349 less interest.
Frequently asked questions
Why does the minimum payment shrink over time?
Because it's calculated as a percentage of your current balance, not a fixed amount. As the balance drops, that percentage produces a smaller dollar figure — until the flat-dollar floor takes over. That shrinking minimum is exactly why minimum-only payoff drags on for years: your payment gets smaller right when you'd want it to stay the same.
Is 2% a typical minimum payment percentage?
It's a common figure, but issuers vary — many use 1% to 3% of the balance, sometimes plus that month's interest and fees. Check your card's cardholder agreement or statement for your actual formula; this calculator's percent and floor fields let you match it.
What's the fastest way out of credit card debt?
Pay more than the minimum, and ideally hold that higher payment fixed rather than letting it shrink with the balance — this calculator's fixed-payment comparison shows how much time and interest that alone saves. Paying down the highest-APR balance first (if you carry more than one card) adds further savings.
Does paying only the minimum hurt my credit score?
Making the minimum payment on time doesn't directly hurt your score — payment history only checks whether you paid, not how much. But carrying a high balance relative to your limit (your credit utilization) does weigh on your score, and minimum-only payments keep utilization elevated for a long time. This is a factual note, not personalized credit advice.