💳 Credit Card Minimum Payment Calculator
Calculate minimum payment and payoff timeline
Typically 1-3% of balance (often 2%)
How to Use This Calculator
Enter Credit Card Balance
Input your current credit card balance - the amount you owe on the card.
Enter APR
Enter your credit card's Annual Percentage Rate (APR). This is the interest rate charged on your balance.
Enter Minimum Payment Percentage
Enter the minimum payment percentage (typically 1-3%, often 2%). This is the percentage of balance plus interest that makes up your minimum payment.
Review Results
See your minimum payment amount and how long it will take to pay off your balance making only minimum payments. This shows why paying more than minimum is important.
Formula
Minimum Payment = Max(Balance × Percentage + Interest, $25)
Interest = Balance × (APR ÷ 12)
Example Calculation:
If balance is $5,000, APR 18%, minimum payment 2%:
• Monthly interest = $5,000 × (18% ÷ 12) = $75
• Percentage amount = $5,000 × 2% = $100
• Minimum payment = $100 + $75 = $175 (or $25 minimum, whichever is higher)
• With minimum payments, payoff takes many years!
About Credit Card Minimum Payment Calculator
A credit card minimum payment calculator helps you understand how minimum payments work and how long it takes to pay off your credit card balance making only minimum payments. Minimum payments are typically calculated as a percentage of your balance (usually 1-3%) plus interest, with a minimum dollar amount (often $25). While minimum payments keep your account in good standing, they result in paying significant interest over many years. This calculator shows you the true cost of making only minimum payments.
When to Use This Calculator
- Payment Planning: Understand your minimum payment amount
- Debt Awareness: See how long minimum payments take to pay off debt
- Interest Analysis: Understand total interest paid with minimum payments
- Motivation: See why paying more than minimum is important
Understanding Minimum Payments
- Calculation: Typically percentage of balance (1-3%) + interest + fees
- Minimum Amount: Often $25 or higher minimum regardless of balance
- Interest Component: Minimum payments include interest, so principal reduction is slow
- Time to Payoff: Minimum payments can take 10+ years to pay off balances
Why Use Our Calculator?
- ✅ Minimum Payment: Calculate your exact minimum payment
- ✅ Payoff Timeline: See how long minimum payments take
- ✅ Interest Costs: Understand total interest paid
- ✅ Education: Learn why paying more than minimum matters
- ✅ 100% Free: No registration or payment required
Why Pay More Than Minimum?
- Faster Payoff: Pay off debt much faster with higher payments
- Less Interest: Save thousands in interest payments
- Financial Freedom: Get out of debt sooner
- Credit Score: Lower balances improve credit utilization ratio
Frequently Asked Questions
How is minimum payment calculated?
Minimum payments are typically calculated as: (Balance × Percentage, usually 1-3%) + Interest + Fees, with a minimum dollar amount (often $25). For example, if your balance is $5,000 and the minimum is 2%, your minimum payment would be approximately $100 plus interest.
What happens if I only make minimum payments?
If you only make minimum payments, it can take many years (often 10+ years) to pay off your balance, and you'll pay thousands in interest. For example, a $5,000 balance at 18% APR with 2% minimum payments takes about 30 years to pay off and costs over $7,000 in interest.
Should I always pay more than the minimum?
Yes, if possible! Paying more than the minimum significantly reduces payoff time and interest costs. Even paying $50-100 more per month can save years and thousands in interest. Always pay as much as you can afford above the minimum.
What's the difference between minimum payment and paying in full?
Paying in full avoids interest charges (if paid by due date), while minimum payments keep your account in good standing but result in paying interest on the remaining balance. Paying in full is always the best option if you can afford it.