Finance

Minimum Payment Calculator

Most cards set the minimum as the greater of a percentage of the balance or a flat amount, and interest accrues on the rest. Enter your balance, rate and terms to see the minimum due and how many months — and how much interest — it would take to clear the card at that minimum alone.

Estimates only. This tool is provided for educational purposes and is not financial advice. It models the figures you enter — it does not know your credit terms, local taxes, or fees. Talk to a licensed adviser before making a decision.

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How to use the minimum payment calculator

  1. Enter your balance.
  2. Enter the minimum percentage and the flat minimum your card uses (the higher applies).
  3. Enter the APR and any extra you can add each month.
  4. Read the minimum due and the payoff time if you pay only that.

Worked example

A $3,000 balance at 24% APR with a 2% minimum (floor $25) owes a $60 minimum and about $60 interest the first month. Paying only the minimum would take roughly 14 years and cost far more in interest than the original balance.

Why the minimum is a trap

Minimum = max(Balance x Percent, Flat amount)

Monthly interest = Balance x APR / 1200

The minimum payment barely covers the interest when balances are large, so the balance creeps down slowly and compounds against you. Two rules of thumb: pay above the minimum every month, and if the minimum is less than the monthly interest, the balance will actually grow. Adding even a small fixed extra — the field above — can cut the payoff time by years.

Frequently asked questions

How is the credit card minimum calculated?

Cards usually charge the greater of a percentage of your balance (often 1 to 3 percent) or a flat dollar amount such as $25.

Why does paying only the minimum take so long?

Because most of the minimum goes to interest; only a sliver reduces the balance, so the debt lingers and interest keeps compounding.

What if the minimum is less than the interest?

Then the balance grows even though you pay on time. You must pay more than the interest to make progress.

How much should I pay instead?

As much as you can above the minimum. Paying the balance in full each month avoids interest entirely.

Does the APR or the minimum matter more?

Both. A high APR makes a small minimum especially damaging, so attack high-APR cards first while paying at least the minimum on others.

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