Credit Card Minimum Payment Calculator
See how long minimum payments take to pay off your credit card and how much interest you pay.
Enter Details
Results
Related Calculators
Frequently Asked Questions
Why does paying only the minimum take so long?
Minimum payments are typically 1-2% of your balance, barely covering interest. At 22% APR on a $5,000 balance, the first minimum payment is about $100 — but $92 of that is interest, leaving only $8 reducing the principal. As the balance slowly drops, so does the minimum payment, extending payoff to 20-30 years and costing 2-3x the original balance in interest.
What is the fastest way to pay off credit card debt?
Pay as much above the minimum as possible every month. Even doubling your minimum payment dramatically cuts payoff time and interest. Use the debt avalanche (highest APR first) or debt snowball (smallest balance first) method if you have multiple cards. Stop using the card for new purchases while paying it off. Consider a 0% balance transfer to stop interest accumulation.
Does paying minimum hurt my credit score?
Paying the minimum keeps your account in good standing and avoids late fees — it does not directly hurt your score. However it keeps your credit utilization high (ideally under 30%), which does negatively impact your score. Carrying high balances relative to your limit is the second most important credit score factor after payment history.
What minimum payments do to a $5,000 balance at 24%
A typical minimum is 1% of the balance plus the month's interest, with a floor of $25 to $35. On $5,000 at 24% the first minimum is about $150, and because it shrinks as the balance falls, the payoff takes almost two decades. Fixed payments change everything, and the table shows why.
| Monthly payment | Months to pay off | Total interest |
|---|---|---|
| Minimum (1% + interest, falling each month) | 234 (19.5 years) | $8,887 |
| $100 fixed | Never: $100 equals the first month's interest | Unlimited |
| $150 fixed | 56 (4.7 years) | $3,322 |
| $200 fixed | 36 (3 years) | $2,001 |
| $300 fixed | 21 | $1,143 |
| $500 fixed | 12 | $635 |
The minimum payment case pays $13,887 in total for a $5,000 balance. Nothing else in consumer finance costs this much for this little.
Worked example: the first month
Interest = 5,000 x 24% / 12 = $100. Minimum = 1% of balance ($50) + $100 = $150. Of the $150, $100 is interest and $50 reduces the balance to $4,950. Next month the minimum is $149, then $148, and so on, which is why the schedule stretches. Pay a fixed $150 instead and the share going to principal grows every month: by month 24 it is $80 of the $150.
The $100 trap
At 24%, a $5,000 balance generates exactly $100 of interest a month. A fixed $100 payment never touches the principal, and $90 a month makes the balance grow. Any card with a balance where the payment is near the monthly interest is in this trap, and the fix is either a higher payment or a lower rate: the same $5,000 at 0% on a balance transfer card with a 3% fee ($150) is cleared in 18 months at $286 a month with no further interest.
Why the minimum is set where it is
Federal guidance since 2003 requires minimums high enough to repay a balance in a reasonable period, which issuers met with the 1% plus interest formula. It satisfies the rule and maximizes interest income. The payoff disclosure on every statement (required by the CARD Act of 2009) shows the minimum-payment timeline and the 3 year payment; the 3 year figure is the one to use.
Order of attack with several cards
Pay the minimum on all cards so none goes delinquent, then put every extra dollar on the highest rate card (avalanche, lowest total interest) or the smallest balance (snowball, fastest first win). The difference in interest between the two methods is usually small; the difference between either method and paying minimums is enormous. Run the debt avalanche and snowball calculators on this site with your real balances to see both schedules.