Minimum Payment Calculator
See how long paying only the minimum on a credit card keeps you in debt, and what it costs.
About the Minimum Payment Calculator
Enter the card balance, the APR and how your card works out its minimum payment (a percentage of the balance, plus interest or not, with a floor). The calculator shows how long minimum payments take to clear the balance, the total interest and a chart of the balance falling.
Minimum payments shrink as the balance falls, so the debt lasts for years. US card statements must show this “minimum payment warning” under the CARD Act of 2009. Your card's exact minimum formula is in its agreement.
The formula
Minimum = max(floor, balance × % + interest)
Worked example
5,000 at 22.99% APR; minimum = 1% of balance + interest, at least 35
- First minimum: 50 + 95.79 interest = 145.79
- Paying only the minimum takes 16 years 7 months
- Total interest: about 8,053, more than the original balance
Things to keep in mind
- Assumes no new spending, fees or rate changes.
Questions people ask
Why does it take so long?
Most of each minimum goes to interest, and the payment falls as the balance does.
What's the fastest fix?
Pay a fixed amount each month instead of the shrinking minimum.
Does a balance transfer help?
It can, if you clear the balance during a 0% period; see the Balance Transfer Calculator.