Credit Card Minimum Payment Calculator

Most major US card issuers use one of two formulas. The common form is the greater of a percent of your balance (typically 1% to 3%) and a flat floor (usually $25 to $35). A second variant adds that month's accrued interest on top of the percent, then applies the same floor. If your balance has fallen so low that the percent is under the floor, you just pay the floor until the card closes out. This calculator supports both formulas via the 'include accrued interest' toggle.

Because the minimum is recalculated against a shrinking balance every month. As you pay down, 2% of a smaller balance is itself smaller, so the dollar amount applied to principal keeps falling. On a $5,000 balance at 18% APR with a 2% minimum, the first month sends about $25 to principal and the rest to interest. By the time the balance hits $1,000, the percent-based portion is so small that only the $25 floor keeps the card moving toward zero. Total payoff easily stretches past 15 years.

When your APR divided by 12 is higher than your minimum percent of balance. At a 2% minimum and 24% APR, the monthly interest rate is 2%, so the entire minimum just pays interest and the balance never falls. This calculator detects that case and flags the projection as 'Never (minimum below interest)' instead of returning a misleading number. The fix is to lower the APR (often via a balance transfer card) or pay more than the minimum.

A lot faster, because every extra dollar above the interest charge goes straight to principal. On a $5,000 balance at 18%, the standard minimum-only plan can run roughly 30 years and rack up over $7,000 in interest. Paying double the first month's minimum and holding that amount constant typically clears the card in well under a third of the time and cuts total interest by more than half.

No. The projection assumes a fixed APR and no new spending. Real cards have a variable APR tied to the prime rate, and a single new purchase resets the math because it adds to your balance and starts accruing interest. To stay out of the minimum-payment trap, stop using the card for new purchases until it is paid off, and rerun this calculator if your APR changes.