Minimum Payment Calculator

A minimum payment calculator reveals what happens if you pay only the small amount your issuer requires each month: how many years it takes and how much interest you hand over.

Minimum payments are designed to keep your account current, not to get you out of debt. Because the required amount shrinks as your balance falls, the last stretch of repayment can drag on for years.

Seeing the timeline and total cost side by side is usually the fastest way to understand why paying more than the minimum matters so much.

How this calculator works

Most issuers set the minimum as the larger of a flat floor (commonly $25 to $35) or a percentage of the balance (often 1% to 3%), and many use interest plus fees plus about 1% of principal. The calculator recomputes the minimum every month as the balance shrinks, so the payment gets smaller over time. Because a smaller payment covers less principal, each reduction stretches the timeline: a balance that could be cleared in a few years at a fixed payment can take 20 or more years on a shrinking minimum, and total interest can approach or exceed the original balance.

What affects the number

• The minimum falls as the balance falls, which is the main reason payoff stretches into decades.
• Percentage-based minimums (1-3%) shrink faster than fixed-dollar floors, dragging out the tail end.
• The higher the APR, the more of each minimum payment goes to interest instead of principal.
• Deferred-interest promotions can add back all accrued interest if the balance is not paid in full by the deadline.
• By law your monthly statement shows a minimum-payment payoff estimate and a 3-year payoff figure; compare them to a fixed-payment plan.
• Adding even $25 to $50 above the minimum each month can cut years off the timeline.

Frequently asked questions

This calculator provides general estimates for educational purposes only and is not financial advice. Your actual costs and credit outcomes depend on your specific card terms, issuer, and situation.