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Credit Card Minimum Payment Calculator

Discover the true cost of paying only the minimum on your credit card. See the total interest paid and years it takes to clear your balance this way.

Results

Enter values and click Calculate to see results

How to Use This Minimum Payment Calculator

1

Enter your credit card balance

Input your current outstanding balance. This is the total amount you owe on the card.

2

Add your APR and minimum payment percentage

Enter your annual interest rate (APR). Most cards require 2-3% minimum payments, with a $25 floor.

3

See the true cost of minimum payments

The calculator shows how many years it takes to pay off and the total interest you'll pay.

The Cost of Minimum Payments: Example Scenarios

BalanceAPRTime to PayoffTotal Interest
$1,00018%9 years$867
$5,00018%31 years$10,450
$10,00018%47 years$24,800
$5,00024%Never pays off*Balance grows

*At high APRs with low minimum payments, interest can exceed the payment, causing the balance to grow indefinitely.

Why Minimum Payments Keep You in Debt

How Minimum Payments Work

Credit cards typically require 2-3% of your balance or $25, whichever is higher. On a $5,000 balance at 18% APR, the minimum might be $100-150. But most of that goes to interest, not principal.

The Interest Trap

At 18% APR, a $5,000 balance accrues about $75 in interest the first month. If your minimum payment is $100, only $25 reduces the principal. Next month, you're paying interest on $4,975—not much progress.

The Payment Floor Problem

When your balance drops low enough that 2% falls below $25, the $25 floor kicks in. This helps you finish paying off, but by then you've already paid years of interest.

Strategies to Escape Credit Card Debt

Pay more than the minimum

Even an extra $50/month dramatically reduces payoff time. On $5,000 at 18%, paying $200 instead of $100 cuts 20+ years off the payoff.

Try the avalanche method

Pay minimums on all cards, put extra money toward the highest-APR card first. Mathematically optimal—saves the most on interest.

Consider balance transfer

0% intro APR cards let you pay down principal without interest. Watch for transfer fees (typically 3-5%) and the rate after intro period ends.

Stop using the card

You can't dig out while still digging. Use cash or debit until balances are under control. Keep the card open (don't close it) to protect your credit utilization ratio.

Frequently Asked Questions

What happens if I only pay the minimum?
You'll stay in debt for years or decades. Most of your payment goes to interest, barely touching the principal. A $5,000 balance at 18% could take 30+ years to pay off, costing more than $10,000 in interest alone.
Is paying minimum better than skipping payment?
Yes. Minimum payments keep your account current and avoid late fees and credit score damage. But it's the bare minimum—treat it as a temporary floor, not a long-term strategy.
How can I calculate my own payoff timeline?
Use this calculator with your actual balance and APR. Then experiment with higher monthly payments to see how much time and interest you can save. Even small increases make a big difference.
Should I use savings to pay off credit cards?
Usually yes, if your card APR exceeds your savings interest rate. Credit card debt at 18-25% costs far more than savings earns at 4-5%. Keep a small emergency fund ($1,000-2,000) while paying down debt.
Will paying more than minimum hurt my credit?
No, it helps. Lower balances improve your credit utilization ratio, which is 30% of your FICO score. Paying down debt is one of the fastest ways to boost your credit score.

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