Credit Card Minimum Payment Calculator
Enter a balance, APR, and minimum payment percent to see how long a minimum-only payoff takes and how much interest it racks up — a stark look at why paying only the minimum keeps a balance alive for decades.
Model minimum-only payments
Total revolving balance, up to $1,000,000.
Use a rate from 0% through 40%.
Paying only the minimum drags the balance out for decades while interest piles up.
- Total interest
- $43,419.49
- First minimum payment
- $100.00
Minimum-only payments barely dent the balance. Because the required minimum shrinks as the balance falls, most of each payment goes to interest — paying even a little more each month clears the debt far sooner and cuts total interest sharply.
How minimum-only payoff time is calculated
Each month, interest is charged on the current balance and the minimum payment is recalculated as a percent of that balance, floored at $25 — the way many issuers set minimums. Because the required payment shrinks along with the balance, an ever-larger share of each payment goes to interest, so the payoff stretches on for years. If the balance still has not cleared within the model horizon, the result is reported as not paying off in that window.
Interest = Balance × (APR ÷ 12)Minimum = max(Balance × Minimum %, $25)New balance = Balance + Interest − Minimum- Balance
- Current balance, recomputed each month
- APR
- Annual percentage rate
- Minimum %
- Percent of the current balance due each month
$5,000 balance at 22% APR, 2% minimum
A $5,000 balance at 22% APR with a 2% minimum starts with a first required payment of $100 (2% of $5,000). As the balance falls, the required minimum falls with it, so the payoff drags on for 968 months — about 80 years — and racks up $43,419.49 in total interest, far more than the original balance.
This is why minimum-only payments barely dent a balance: paying even a modest fixed amount above the minimum each month clears the debt in a small fraction of the time and slashes total interest.
What this calculator assumes
- The entered APR stays fixed for the full payoff period.
- No new charges are added to the balance after the start.
- The minimum each month is a percent of the current balance, floored at $25; issuers' real formulas vary.
- No annual fees, late fees, or promotional-rate periods are modeled.
- Money values are rounded to the nearest cent for display.
Minimum payment FAQ
Why does the minimum payment shrink over time?
A percent-based minimum is calculated on the current balance, so as the balance falls the dollar minimum falls too. That keeps payments low but means less principal is repaid each month, which is what stretches the payoff out for decades.
What happens if the balance never pays off in the model?
On very high balances or rates, the declining minimum can barely outpace interest, so the balance does not clear within the calculator's modeled horizon. In that case the result reads "does not pay off within the modeled horizon," a signal that a fixed higher payment is needed.
Sources and review notes
- Consumer Financial Protection Bureau — credit card minimum payments
- Financial Consumer Agency of Canada — credit card payments
Methodology last checked Jul 14, 2026. Formula implementation is covered by deterministic unit tests. No financial professional review is claimed yet.