By ToolzHive
About this tool
Paying only the minimum on a credit card keeps your account in good standing, but it can take years or even decades to clear the debt. This calculator follows your balance month by month using your card's minimum payment rule, shows how long payoff takes and the total interest, and compares it with keeping your first minimum payment fixed.
How to use Credit Card Minimum Payment Calculator
- Enter your balance and APR.
- Choose your card's minimum payment rule (interest plus a percentage, or a percentage of the balance) and the minimum dollar amount.
- Compare the time and interest of minimum payments with a fixed payment.
Worked example
On a $5,000 balance at 24% APR, a minimum of interest plus 1% of the balance (at least $25) takes about 19 years to pay off. Keeping the first payment fixed instead clears it in a few years and saves thousands in interest.
How are credit card minimum payments calculated?
Common rules are interest plus 1% of the balance, or a flat 2–3% of the balance, with a minimum of about $25–$35. Your statement shows the rule your card uses.
Why does it take so long to pay off with minimums?
The minimum shrinks as your balance falls, so you pay less and less toward the principal each month while interest keeps being charged.
Is paying the minimum bad for my credit score?
Paying on time helps your score, but carrying a high balance raises your credit utilization, which can lower it. Paying more reduces utilization faster.
Put this guide into practice
- Credit Card Minimum Payment Calculator — See how long paying only the minimum takes, and how much it really costs.