Debt, loans, cars and credit
Credit Card Minimum Payment Calculator
How your card's minimum payment is worked out, how long paying only the minimum takes, and what it costs in interest.
- Shows its working
- Sources named below
- Runs in your browser; nothing is stored
Credit cards with a 0% intro APR
Paying only the minimum at 24% APR (1% of the balance plus interest, $35 at least)
| Balance | First minimum | Time to pay off | Interest |
|---|---|---|---|
| $1,000 | $35 | 3 years 7 months | $498 |
| $3,000 | $90 | 12 years 6 months | $4,442 |
| $5,000 | $150 | 16 years 9 months | $8,442 |
| $10,000 | $300 | 22 years 6 months | $18,442 |
| $20,000 | $600 | 28 years 3 months | $38,442 |
The same $5,000 at 24% APR under different minimum payment rules ($35 at least)
| Rule | First minimum | Time to pay off | Interest |
|---|---|---|---|
| 1% plus interest | $150 | 16 years 9 months | $8,442 |
| 2% of the balance | $100 | Never | – |
| 3% of the balance | $150 | 16 years 9 months | $8,442 |
| 4% of the balance | $200 | 10 years 2 months | $4,475 |
How this calculator works
Each month the minimum is recalculated from the new balance: a percentage of it (with some issuers, plus that month's interest and fees), but never less than a floor such as $35, and never more than you owe.
Because the minimum shrinks as the balance does, most of each payment goes to interest and the balance falls slowly. Keeping your first payment fixed instead clears the card much sooner, which the chart shows.
Questions people ask
How is a credit card minimum payment calculated?
Usually as 1% of the balance plus that month's interest and fees, or as 2% to 4% of the balance, with a floor of about $25 to $40. If you owe less than the floor, the minimum is the full balance.
How long does it take to pay off a credit card paying the minimum?
Years. $5,000 at 24% APR with a 1%-plus-interest minimum takes 16 years 9 months and costs $8,442 in interest. Keeping the first $150 payment fixed takes 4 years 8 months.
Why does my statement show a three-year payment?
Regulation Z requires card statements to show how long paying only the minimum would take, what it would cost, and the monthly payment that would clear the balance in three years (12 CFR 1026.7(b)(12)).
Does paying only the minimum hurt my credit score?
Paying at least the minimum on time keeps your record clean. But a balance that stays high keeps your credit utilization high, which does weigh on scores.
What happens if I miss the minimum payment?
You can be charged a late fee, and once a payment is 60 days late the issuer may apply a penalty APR to your balance. Late payments are usually reported to the credit bureaus once they are 30 days past due.
Terms explained
Related calculators
Sources
- CFPB: Regulation Z, periodic statement disclosures including the minimum payment warning (12 CFR 1026.7)
- CFPB: Regulation Z, limits on increasing rates (12 CFR 1026.55)
Updated by the RateHerald team. The maths is tested against worked examples; report a problem.