Credit Card Minimum Payment Calculator
This calculator shows you today's minimum payment on your credit card balance, and simulates what happens if you pay only that minimum every month. The standard US credit card minimum is the greater of a fixed floor (such as $25) or a percentage of the balance (commonly 2%). Because the minimum shrinks as the balance shrinks, paying only minimums creates a treadmill that keeps you in debt for years. Enter your balance, APR, and minimum payment rule below to see the true cost of making only minimum payments.
Minimum payment formula
Min = max(balance * minRate/100, floor). Each month: interest = balance * APR/12/100; balance = balance + interest - payment.
The simulation runs month by month: apply monthly interest, then deduct the minimum payment (the greater of the percentage floor or the fixed floor). Repeat until balance falls below $0.01.
Why minimum payments are dangerous
Credit card minimum payments are designed to keep you paying interest for as long as possible. The CARD Act of 2009 requires issuers to warn you on each statement exactly how long minimum-only payments would take and how much they would cost. Use those disclosures, or this calculator, to understand your real payoff timeline before deciding how much to pay each month.
Frequently asked questions
How do credit card issuers calculate minimum payments?
Most US issuers use the greater of: (a) a fixed dollar floor (commonly $25 or $35), or (b) a percentage of the statement balance (commonly 1% to 3%) plus any accrued interest and fees. Some use 1% of balance plus interest. Check your cardholder agreement for the exact formula.
How long does it take to pay off a card paying only minimums?
Paying only minimums on a typical credit card balance can take many years and cost far more in interest than the original purchase. A $3,000 balance at 20% APR with a 2% minimum payment takes roughly 27 years to pay off and costs nearly $5,000 in interest.
Does the CARD Act affect minimum payments?
Yes. The Credit Card Accountability Responsibility and Disclosure Act of 2009 requires that monthly statements show a minimum payment warning: how long it would take to pay off the balance paying only the minimum, and the payment needed to pay it off in 3 years.
Why do minimums decrease over time?
Because the minimum is a percentage of the outstanding balance, as the balance falls, the minimum falls too. This keeps you in debt longer. Paying a fixed amount above the minimum accelerates payoff significantly.
What is the best strategy to pay off credit card debt?
Pay more than the minimum every month. Even an extra $20 per month can save hundreds of dollars in interest. The CFPB recommends paying in full monthly to avoid all interest, or at least paying as much as you can afford above the minimum.
Official sources
- CFPB: Credit Cards.
- Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009, Pub. L. 111-24: Full text (GovInfo).
Reviewed by the CalculatorHub team, edited by James Graham, 15 June 2026. See our methodology.