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Minimum Payment Calculator
See the true cost of paying only the minimum on a credit card. Enter your balance, APR, and minimum terms, then press Calculate to reveal the payoff time and interest.
Written by TopicDrill Editorial Team·Updated June 2026
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How the minimum payment calculator works
Each month the tool charges interest on your current balance, then sets the required payment to the greater of a percentage of the balance or a fixed dollar floor, just as card issuers do. Whatever is left after interest reduces the principal. Because the percentage minimum keeps shrinking as the balance drops, the early months barely make a dent, and the payoff drags on for years.
The chart traces the balance falling month by month. You will notice the curve is steep at first and then flattens once the payment hits the fixed floor, which is the stage where most of the long tail of interest piles up.
A quick example
Take a 5,000 dollar balance at a 22 percent APR with a 2 percent minimum and a 25 dollar floor. The first payment is about 100 dollars, but roughly 92 of that is interest. Paying only the minimum stretches the payoff well past a decade and adds thousands of dollars in interest on top of the original balance.
Things to keep in mind
The single most powerful change is to pay a steady fixed amount rather than the shrinking minimum, since every extra dollar attacks principal directly. For consumer guidance on card debt and your rights, see the Consumer Financial Protection Bureau. To compare a fixed payoff plan, use our credit card payoff calculator.
Frequently asked questions
How is a credit card minimum payment calculated?
Most issuers set the minimum as the greater of a small percentage of your balance, often 1 to 3 percent, or a fixed floor such as 25 dollars. This tool uses that same greater-of rule each month, so the required payment shrinks as the balance falls until it hits the floor.
Why does paying the minimum take so long?
Because the minimum is tied to the balance, it falls as you pay down, so less goes toward principal every month. Combined with interest charged on the remaining balance, this stretches a few thousand dollars into one or even two decades of payments and a large interest bill.
Can a balance never get paid off?
It can stall if the minimum payment is smaller than the monthly interest, which happens at very high rates with a low percentage minimum. When that occurs the balance holds steady or grows, and this calculator flags it so you know the minimum alone will not work.
How much faster is it to pay more than the minimum?
Dramatically faster. Even a modest fixed extra amount each month goes straight to principal, which cuts both the payoff time and the total interest sharply. Paying a steady flat figure instead of a shrinking percentage is one of the most effective ways to escape card debt.
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