RateHerald

No link on RateHerald pays us today. When some do, they'll say so, and they'll never change a ranking. How we make money

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.

Paying only the minimum on $5,000 at 24% APR takes 16 years 9 months and costs $8,442 in interest. Keeping the first payment of $150 every month instead clears it in 4 years 8 months.

First minimum payment
$150
Paying only the minimum takes
16 years 9 months
Interest paying only the minimum
$8,442
Keep paying $150 every month
4 years 8 months, $3,322 interest
Balance owed each month: minimum payments against a fixed $150$0$1k$2k$3k$4k$5k060120180Months━Minimum payments━Fixed $150

Credit cards with a 0% intro APR →

Paying only the minimum at 24% APR (1% of the balance plus interest, $35 at least)

BalanceFirst minimumTime to pay offInterest
$1,000$353 years 7 months$498
$3,000$9012 years 6 months$4,442
$5,000$15016 years 9 months$8,442
$10,000$30022 years 6 months$18,442
$20,000$60028 years 3 months$38,442

The same $5,000 at 24% APR under different minimum payment rules ($35 at least)

RuleFirst minimumTime to pay offInterest
1% plus interest$15016 years 9 months$8,442
2% of the balance$100Never–
3% of the balance$15016 years 9 months$8,442
4% of the balance$20010 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.

What it assumes

  • No new purchases, fees or rate changes. Interest is charged monthly at APR ÷ 12; issuers charge a daily rate, so real interest is a little higher.
  • The rule and the floor are yours to set: your cardmember agreement states them.
  • A minimum below the month's interest never pays the card off; the calculator says so.

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

  • Credit Card Payoff CalculatorHow long a card balance takes to pay off at a fixed monthly payment, what the interest costs, and what paying a little more saves.
  • Balance Transfer CalculatorWhether moving a card balance to a 0% intro APR card saves money once the transfer fee is paid, and the payment that clears it before the 0% ends.
  • Credit Utilization CalculatorThe share of your credit limits you are using, overall and on each card, and how much to pay before your statement dates to bring it down.

Sources

Updated by the RateHerald team. The maths is tested against worked examples; report a problem.

Embed this calculator on your site

Free to use. Copy this code; the link back is appreciated, not required.