Credit Card Minimum Payment Calculator
Find out the true cost of paying only the minimum on a credit card.
Why minimum payments take so long
Most card issuers set the minimum at a small percentage of the balance (often 1%) plus the month’s interest, with a fixed floor. As the balance falls, so does the minimum, which stretches payoff out for many years and multiplies the interest.
Example
A 5,000 balance at 19.9% with a minimum of 1% of the balance plus interest (never less than 25) starts at 132.92 a month and takes about 18 years 10 months to clear, costing about 7,278 in interest. Paying that first amount every month instead clears it in about 5 years.
How to pay less interest
- Pay a fixed amount, even a small bit above the minimum, instead of letting it fall.
- Stop adding new purchases to a card you are paying down.
- Ask about a lower rate or a balance transfer, and check the fees.
Frequently asked questions
Is my issuer's minimum calculated this way?
Rules differ. Check your statement, which in many countries must show how long minimum payments will take.
What if I make a payment above the minimum?
Use the debt payoff calculator to see how a fixed payment changes the time and interest.
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