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) | — |
| Payment to clear in 3 years (as shown on your statement) | — |
| Fixed payment payoff time | — |
| Interest paid (fixed payment) | — |
| You save with the fixed payment | — |
Quick answer: 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.
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 | ≈ 3 yr 0 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.
The dollar floor changes the math
Real US cards don't charge a pure percentage — they charge the greater of a percentage or a fixed dollar floor, usually $25–$35. That floor matters: once a shrinking balance drops the percentage below the floor, the flat dollar amount takes over and actually starts paying real principal. A percentage that on its own would never cover the interest can be rescued by the floor — which is why this calculator applies the floor first, then decides whether the balance ever clears. Set the floor to match your card agreement.
The 3-year payment your statement already shows
Since the CARD Act of 2009, every US credit card statement is legally required to print a specific figure: the fixed monthly payment that would clear your current balance in 36 months. That box on your statement — "if you pay this amount each month, you'll pay off the balance in 3 years" — comes from Regulation Z §1026.7(b)(12) (calculation method in Appendix M1 to Part 1026). This calculator shows the same number, so you can match the warning in front of you and see exactly what "3-year payoff" costs per month.
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 fixed dollar floor ($25–35). Enter both above — the floor is what keeps the balance shrinking once the percentage gets small. Some issuers use interest plus 1% of principal; check your card agreement for the exact method.
What is the 3-year payoff figure on my statement?
The CARD Act (Regulation Z §1026.7(b)(12)) requires every US credit card statement to show the fixed monthly payment that clears your current balance in exactly 36 months. This calculator computes the same figure, so you can match the box on your statement and see what a 3-year payoff costs per month.
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