How the Minimum Payment Calculator works
See the long-term cost of paying only the minimum. Adjust the inputs above, then use the calculate button to generate a fresh estimate based on the numbers you entered.
The result is designed to give you a quick planning number, plus a short breakdown of the major figures behind it. You can reset the form at any time and try a different scenario.
When to use this calculator
Use this minimum payment calculator to see why paying only the required minimum can keep credit card debt around for a long time. It is useful for estimating the payoff timeline and interest cost before choosing a higher payment.
Formula
Minimum payment = max(balance x minimum percentage, minimum dollar payment)
- Balance is the current credit card amount owed.
- APR estimates monthly interest charged on the balance.
- Minimum payment is recalculated from the percentage and dollar floor.
Worked example
For a $6,000 balance at 21.99% APR with a 2.5% minimum and $25 floor, the calculator estimates the long payoff time and interest cost.
Common mistakes
- Assuming the minimum payment is designed to save you money.
- Continuing to make new purchases while paying only the minimum.
- Ignoring how shrinking minimum payments can slow payoff progress.
FAQs
Why does the payoff take so long?
Minimum payments usually fall as the balance falls, which can slow principal reduction.
What payment should I try instead?
Test a fixed payment above the minimum to see how much time and interest may be saved.
Does this include late fees?
No. It assumes payments are made on time and no new fees or purchases are added.