Credit Card Minimum Payment Calculator
Minimum payments are designed to keep you in debt. Enter your balance and APR to see the shocking payoff timeline — then compare it with a fixed monthly payment you choose.
| Interest paid (minimum only) | — |
| Fixed payment payoff time | — |
| Interest paid (fixed payment) | — |
| You save with the fixed payment | — |
The minimum payment trap, explained
Card issuers typically set the minimum at 1–3% of your balance (with a small dollar floor). Because the payment shrinks as the balance shrinks, the payoff stretches out for years while interest keeps compounding at 20%+ APR.
Worked example: $5,000 at 24% APR
| Strategy | Payoff time | Total interest |
|---|---|---|
| Minimum only (3%, $30 floor) | ≈ 18 years | ≈ $8,700 |
| Fixed $200/month | ≈ 2 yr 11 mo | ≈ $2,000 |
| Fixed $300/month | ≈ 1 yr 9 mo | ≈ $1,150 |
Paying a fixed amount — even the same dollar figure as your first minimum payment — breaks the trap, because your payment no longer shrinks with the balance.
Three ways out of card debt
- Fixed payments: pick an amount and never let it drop, as shown above.
- Balance transfer: 0% intro-APR cards (usually 12–21 months, 3–5% transfer fee) pause interest while you attack principal.
- Debt consolidation loan: a personal loan at 10–15% beats card APRs of 20–30% and forces a fixed schedule.
Frequently asked questions
How long to pay off $5,000 paying only the minimum?
At 24% APR with a typical 3% minimum payment, about 18 years — with roughly $8,700 in interest, more than one and a half times the original balance. A fixed $200/month clears it in under 3 years.
How is a credit card minimum payment calculated?
Most US issuers charge the greater of a percentage of your balance (1–3%) or a dollar floor ($25–35). Some use interest plus 1% of principal. Check your card agreement for the exact method.
Does paying the minimum hurt my credit score?
Paying the minimum on time keeps the account current, so no direct damage. But the high balance keeps your credit utilization high, which does lower your score.
What APR does this calculator assume?
Whatever you enter. The average US credit card APR is currently in the 20–25% range; store cards often run near 30%.
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Last updated: 2026-07-07